Market Updates at a Glance 27/7/22 (Wednesday)

☛USD Bounced, Stocks Dipped as the Weak Economic data Weighing on Sentiment. FOMC Eyed.

➤U.S. stocks dipped ahead of the FOMC, with retailers & consumer discretionary bearing the brunt of the sell-off. Nasdaq fell for the third consecutive session. The IMF downgraded the global outlook due to the uncertainties and a possibility of a recession. Dow -0.71%, S&P -1.15% & Nasdaq -1.87%

➤A bounce in the US dollar index yesterday, snapped a three-day losing streak. The DXY jumped to 107.19 (+0.7%) as US equities down with haven demand. The 10-year treasury yield closed higher to 2.81%.
On the technical front for DXY: Price rebounded at the EMA 20 & Kijun-sen (ichimoku analysis) supports.

➤EUR plunged 1% to 1.0119 against the greenback. The weakness of the Euro continues after EU countries decided to reduce gas consumption in the next winter due to the energy crisis. Higher gas prices are likely to be sustained, which makes a recession more likely.

➤GBP edged slightly lower to 1.2031(-0.15%). The Bank of England (BoE) is expected to deliver a moderate hawkish commentary as the inflation rate has climbed to a high of 9.4% while avoiding a recession in UK.

➤Pakistan is expected to secure $1.2b from IMF, according to Fitch & Moody. The currency has plunged nearly 10% since 18/7 against the greenback amid political instability and economic ambiguity.

➤Gold prices ended slightly lower at $1717 as the USD is reversing course. While Oil (Brent) was flat at $104.60 with lower consumer confidence (95.7 vs 97.3 estimates) and another 20 million barrels of Crude Oil to be released from the U.S Strategic Petroleum Reserve.

➤BTC was lower, near $21,000 as of writing. ETH at $1424 and XRP at $0.33.


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