Markets opened cautiously optimistic today after Fed Chair Powell signalled potential rate cuts as early as September. Traders are watching Germany’s Ifo survey and US manufacturing data, while tech sentiment hinges on Nvidia’s upcoming earnings, seen as a key test for AI-driven momentum.
KEY INDICATORS
US Federal Reserve policy outlook
Fed Chair Jerome Powell’s dovish remarks have increased expectations of a September rate cut.
Investors are rotating into cyclical sectors in anticipation of looser monetary policy.
The shift is affecting currency markets, equities, and investor sentiment more broadly.
US economic data releases
New Home Sales (July): An indicator of housing market health.
Dallas Fed Manufacturing Survey: A snapshot of regional manufacturing activity.
Chicago Fed National Activity Index: Measures overall economic performance and inflation pressures.
Nvidia earnings report
Nvidia reports quarterly results this Wednesday, a major market event.
Its AI-driven business performance could influence technology stocks and sector sentiment.
The earnings release may shape broader market expectations amid ongoing Fed policy developments.
MARKET MOVERS
EUR/USD
- Primary trend: Bullish, but a short-term pullback is likely
- Support level: 1.1640
- Resistance zone: 1.1750–1.1780
- Long strategy: Enter on dips towards 1.1640, target 1.1750–1.1780
- Short strategy: Sell if price breaks below 1.1640, target 1.1580–1.1600
- Range trade: Buy near 1.1640 and sell near 1.1750 if price oscillates in this band
- Risk management: Use tight stops when trading within the range
GBP/JPY
- Primary trend: Bullish, with recent sell-offs showing signs of exhaustion on the daily chart
- Support level: 198.25
- Resistance zone: 200.50–201.00
- Long strategy: Buy on dips near 198.25, target 200.50–201.00
- Short strategy: Sell if price breaks below 198.25 with momentum, target 196.50–197.00
- Range trade: Buy near 198.25 and sell near 200.50 if price oscillates in this band
- Risk management: Keep tight stops within the range to minimise risk
XAU/USD
- Primary trend: Bullish, but recent sessions have shown mixed and volatile price-action
- Support level: 3322
- Resistance zone: 3395–3426
- Long strategy: Buy on dips near 3354, target 3395 | 3426
- Short strategy: Sell if price breaks below 3342 with momentum, target 3322–3330
- Range trade: Buy near 3354 and sell near 3395 if price oscillates in this band
- Risk management: Keep tight stops to manage risk within the range
NEWS HEADLINES
Wall Street hits records on Powell’s dovish hint
The Dow jumped 846 points (+1.89%) to a record 45,631, while the S&P 500 rose 1.52% and Nasdaq 100 gained 1.54%.
Tech stocks led the advance, with Tesla up 6.2%, Alphabet +3.2%, Meta +2.1%, Apple +1.3%, and Nvidia +1.7% ahead of Wednesday’s earnings.
Asian session sees euro softening and gold pullback
EUR/USD eased to 1.1698, and GBP/USD dipped to 1.3494.
USD/JPY rebounded to 147.47.
Gold retreated to $3,362 amid mixed trading.
Market focus: Key data releases and events
UK: Stock market closed for the Late Summer Bank Holiday.
Germany: Ifo business climate index expected to slip to 87.0 in August.
US: New home sales projected to fall 1.1% in July; Dallas Fed manufacturing index forecast at 0.2 for August.
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