Categories: Markets

Dollar on the rise due to stock market divergence, Bitcoin cools

Dollar on the rise due to stock market divergence, Bitcoin cools

This is what you need to know to trade today Tuesday, July 27:

The market mood is mixed as China’s tech crackdown weighs on sentiment and contrasts with American optimism. The dollar rises amid COVID uncertainty and ahead of top-tier data releases. Bitcoin cools after Amazon denied that it is considering its use as a means of payment.

Chinese stocks have been extending their declines amid Beijing’s crackdown on tech companies and especially those in the education sector. The mood affects wider markets and pushes the safe-haven dollar higher.

Secondly, the S&P 500 index It hit an all-time high on Monday, partially supported by Tesla’s earnings, which were better than expected. Investors will be watching Alphabet, Apple and other major companies today.

Covid cases in the US continued their upward trend, with the authorities of various jurisdictions demanding vaccinations for public workers. The rapid spread of the Delta variant will be one of the items on the Federal Reserve’s agenda, as it begins its two-day meeting today that will conclude on Wednesday. The bank is ready to leave its policy unchanged and leave the door open to downsizing its bond buying scheme, but refraining from hinting at an imminent move.

While waiting for the Fed, investors will be attentive to requests for durable goods Americans for June, which are expected to show an increase in both the main and underlying numbers. The Conference Board consumer confidence indicator for July will also be released this Tuesday.

Durable Goods Order Preview: Why Expectations May Be Too High

The EUR / USD it remains below 1.18 amid cautious mood and after the German IFO data on business climate fell short of estimates. European infections have stabilized somewhat, although they remain at high levels.

The GBP/USD remains above 1.38 as the UK reported a drop in coronavirus cases for the sixth day in a row. The impact of Britain’s reopening on July 19 on infections is still expected. The pound was hit by somewhat pessimistic comments from Bank of England member Gertjan Vlieghe.

The oro is struggling amid risk-off mood, dropping below $ 1,800. The precious metal remains correlated with US yields.

Bitcoin it is trading around $ 37,000, down from the $ 40,000 it reached on Monday. Amazon denied that it is considering accepting BTC as a means of payment, ending a day of speculation. Ethereum is also bearish, changing hands around $ 2,200.

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