Home Tools Market Update – July 22 – ECB Goes Large

Market Update – July 22 – ECB Goes Large


USDIndex continued to decline testing 106.25, ECB surprised with Hawkish 50bp rate hike lifting rates above 0 (first hike since 2011) and lifting Euro. US Stocks had another positive day (NASDAQ +1.36%) TSLA +9.78%, SNAP +5.42% but dropped -24% after hours on Earnings miss AT&T -7.42% & United Airlines -10.17%. Asian markets are mostly positive. (Hang Seng -0.01%, Nikkei +0.40%). European FUTS also mixed. Yields are down -4.78%. Oil bounced from $95.00 trades at $98.00, Gold up $1720, BTC holds over $22k. Gazprom turns the gas back on but Europe remains nervous as solidarity is tested, Biden tests Covid positive.

  • USDIndex slides further to test 106.25 before bouncing to 107.25 support as EURO rally cools.  
  • EquitiesUSA500 closed +0.99%, 39.00pts (3998), US500FUTS at 3884 now.
  • Yields 10-year yield lower into close at 2.91, trades at 2.915% now. 
  • Oil & Gold had volatile sessions last week – USOil trades up from $95 to test $98.00. Gold tests $1720 now from $1680
  • Bitcoin rallied to $23.8K yesterday and holds $22k now, on more chatter of major investments coming.
  • FX MarketsEURUSD remains pressured but tested 1.0280 yesterday & back to 1.0142 now and USDJPY is down again to 137.58 now. Cable tested back to 1.2000 & back down ti 1.1913. Race to be new PM is reduced to two contenders this week. New PM Sept 5.

OvernightUK Retail Sales and PMIs from  Europe, Germany, UK and US.

Today: UK & US Flash PMIs, UK Retail Sales, ECB SPF & CBR Policy Announcement, Earnings from American Express, Verizon.

Biggest FX Mover @ (06:30 GMT) AUDUSD (+0.60%). AUD continues to recover from last week’s 0.6680 low and no surprises today from RBA Minutes. Next resistance 0.6850 & 0.6900. MAs aligned higher, MACD histogram & signal line higher, RSI 67 & rising, H1 ATR 0.00124, Daily ATR 0.00908.

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Stuart Cowell

Head Market Analyst

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