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16.07.202114:51 Forex Analysis & Reviews: Overview of the US market (07/16/2021)

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Exchange Rates 16.07.2021 analysis

Major US indices declined on Thursday, even though the latest data on the labor market turned out better than expected. NASDAQ lost 0.7%, while S&P 500 slipped 0.3%. Dow Jones also fell, but managed to win back the losses by the end of the day.

According to the report, initial jobless claims were only 360,000, while repeated claims were 3.24 million. This is very good news because it signals that the labor market is improving rather strongly.

As for the Asian markets, a noticeable decrease was also observed this morning. Japan indices dipped 0.9%, while China indices lost as much as 1%. UK indices also sank by 1%.

The oil market also continued to show a decline for two consecutive days, so prices are now near monthly lows. Brent is currently trading at $ 73.30 amid slowing demand in both China and United States.

With regards to the world's epidemiological situation, latest data say COVID-19 infections increased again by 560,000 yesterday, largely due to new virus strains. 48,000 of the cases came from the UK, while 37,000 came from the US. French President Emmanuel Macron Macron implemented a rule that unvaccinated people are prohibited to use transportation services, and are not allowed to enter shopping centers.

Going back to the markets, S&P 500 sank to 4.360 points, so its range also declined to 4.320 - 4.400.

On the other hand, the USD index rose to 92.60, so its range is now 92.30-93.00. It is likely that dollar will remain at these levels until the Fed meeting at the end of this month

As for USD/CAD, it now costs 1.2580 and is expected to value from 1.2500-1.2680. The declining oil prices helped dollar win against loonie, but 1.2700 will be a problem along the way, as it would restrict the price from going higher.

Conclusion: The upcoming report on retail sales may provoke growth in the US market.

Eseguito da Jozef Kovach
Esperto analista di InstaForex
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