Market News Summary
Government data released this Tuesday revealed that the Japanese economy grew by 6% annually in the second quarter, surpassing earlier expectations.
Janet Yellen, the Treasury Secretary, stated on Monday that Biden’s economic policies have been successful, driving a surge in private sector investments and historic job growth in the U.S. Yellen emphasized the return of inflation levels, noting a significant number of Americans satisfied with their personal circumstances.
In Russia, the Russian ruble has depreciated by 30% since the beginning of the year, reaching its lowest level in 17 years.
Dollar Index (USDX)
The dollar surged by about 0.3%, reaching its highest level in over a month. Its focus this week will shift towards U.S. retail sales data on Tuesday, followed by the Federal Open Market Committee’s meeting minutes for July on Wednesday. This may shed light on the appetite for interest rate hikes.
Pivot point: 102.95
| Resistance level | Support level |
| 103.35 | 102.65 |
| 103.67 | 102.30 |
| 104.05 | 101.95 |
Spot Gold (XAUUSD)
Gold prices dropped to their lowest level in over a month on Monday due to the strength of the dollar. Investors are now waiting for new catalysts to assess the decline following mixed U.S. inflation data last week.
Futures contracts for gold settled around 0.1% at $1944 per ounce, while spot gold prices inched down by about 0.3% to $1907.40 per ounce. This came after hitting their lowest point since July 6th.
Pivot point: 1908
| Resistance level | Support level |
| 1914 | 1901 |
| 1922 | 1895 |
| 1928 | 1887 |
Dow Jones Index (DJ30ft – US30)
U.S. indices closed with collective gains in Monday’s session, supported by major technology stocks. Investors also await earnings announcements from retail companies this week, including Walmart and Target.
Investors are also anticipating retail data for July, which will provide insights into the trajectory of the U.S. Federal Reserve’s interest rate hikes. The probability of interest rate stability is at 89% for the upcoming September meeting.
The Dow Jones index rose by approximately 0.07%, equivalent to around 62 points, closing above 35,300 points. Nvidia’s stock surged by about 7% on Monday, marking its highest daily gains in two and a half months and adding around $72 billion to the company’s market value in a single day.
Pivot point: 35345
| Resistance level | Support level |
| 35465 | 35235 |
| 35575 | 35115 |
| 35695 | 35005 |
US Crude (USOUSD)
Oil closed lower on Monday due to concerns about the sluggish economic recovery in China and the rise of the dollar, which dampened the momentum of seven weeks of gains that oil had achieved due to supply constraints.
U.S. West Texas Intermediate (WTI) crude declined by 68 cents or 0.82% to settle at $82.51 per barrel. Brent crude futures also dropped by 60 cents or 0.69% to reach $86.21 per barrel.
Pivot point: 82.45
| Resistance level | Support level |
| 83.15 | 81.75 |
| 83.85 | 81.00 |
| 84.60 | 80.30 |
Risk Statement:
All investments entail risks and can result in both profits and losses. Leveraged products, in particular, may not be appropriate for all investors as the effect of leverage is that both gains and losses are magnified. Before deciding to invest in any financial product, you should carefully consider your investment objectives, financial knowledge and experience and affordability as the prices of leveraged products may change to your disadvantage very quickly, it is possible for you to lose more than your invested capital and you may be required to make further payments.
