Quarterly reports will be published in the US today – 31.7.2020

July 31, 2020

By IFCMarkets

Top daily news

In July, the dollar index decline was the highest over 10 years. The rise in silver prices in July was the most significant in more than 40 years, and gold – in 4 years. The largest hedge funds fear the negative consequences of the global central banks’ monetary emissions, which are intended to help the economies of developed countries hit by Covid-19. It should be noted that the demand has so far applied to precious metals only. Commodity futures quotes remain stable.

Forex news

Currency Pair Change
EUR USD +0.08%
GBP USD +0.27%
USD JPY -0.08%

The US dollar index has not yet been able to reverse upward and today again updated the minimum since May 2018. In July 2020, it plunged 5.3%, the highest monthly decline in the past 10 years. The main reason for this is the risk of new, additional Fed emissions (their volume may amount to $ 1-3.5 trillion) to support the American economy, affected by the coronavirus. Meanwhile, at the end of March, the US authorities already allocated $ 2 trillion for the same purposes. So far, the impact has been weak. Q2 GDP fell by 32.9%. Unemployment remains high. Eurozone GDP data is now available. It decreased by 12.1% in the Q2, which is markedly better than in the US. This difference supports the EURUSD rate. Two indicators, PCE Price and Michigan Consumer Sentiment,  are due in the US today. The forecasts look rather negative.

Stock Market news

Indices Change
S&P 500 -0.38%
Dow Jones Index -0.85%
Nasdaq 100 +0.43%
GB 100 Index -0.05%
FR 40 +0.21%

On Thursday, there was no single trend in the American stock market. Relatively weak GDP data for the 2nd quarter (-32.9%) and weekly unemployment (1,434 thousand Initial Jobless Claims) were offset by strong quarterly reports of the largest Internet companies: Apple, Amazon.com, Alphabet (Google) and Facebook … As a result, the Nasdaq rose, while the Dow and S & P500 declined. Merck & Co, Exxon Mobil, Chevron, Caterpillar and a number of other large companies of the “old” economy will report their quarterly results today. Their reports may disappoint investors, as can the macroeconomic data on consumer sentiment and spending.

Commodity Market news

Commodities Change
Brent Crude Oil +0.42%
WTI Crude +0.6%

Today oil quotes continue to drop. Investors fear a decline in oil demand due to the growing number of Covid-19 cases in the US. At the same time, OPEC + is going to increase oil production by 1.5 million barrels per day from August 1. Arabica coffee prices continued their growth and reached their 3-month high. Robusta has updated its  7-month maximum. Nestle and Starbucks notice an increase in global coffee demand.

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Gold Market News

Metals Change
Gold +1.49%

Gold quotes resumed their growth today amid the weakening dollar. Gold rose in price by 10.7% in July 2020,  which was the maximum growth over 4 years. The monthly growth of silver quotes by 33% was the highest since 1979. The main reason for this was the purchases by major hedge funds against the background of the world central banks’ monetary emissions to stimulate their economies, affected by Covid-19.

By IFCMarkets