This is what you need to know to trade today Monday, August 2:
The recovery of risk sentiment remains the main underlying theme so far this Monday. Investors remain encouraged, starting a new month, amid concerns about moderating China’s economic growth and a regulatory crackdown.
The chinese stocks They erased early losses and rose, leading to a rally in Asian equities, as markets anticipate more support for monetary policy amid the disappointing manufacturing PMI of the world’s second-largest economy.
Meanwhile, the progress made on the US infrastructure spending plan helped sentiment. US Senator Kyrsten Sinema introduced an approximately $ 1 trillion bipartisan infrastructure bill, in a step toward passing the infrastructure bill.
Given the optimism for the stimulus, the US dollar moderates across the board, looking to reverse its recovery after the post-Fed crash. News of US infrastructure spending raises S&P 500 futures, although they fail to impress AUD / USD, as it continues to be weighed down by lockdowns in Australia.
US Treasury yields reverse previous gains amid a flight to safety in the US bonds, shrugging off the progress on US President Joe Biden’s $ 1.2 trillion bipartisan infrastructure deal. The US Senate remains optimistic about the prospects for a bipartisan $ 1 trillion infrastructure bill, which cleared a major procedural hurdle with a 67-32 vote on Wednesday.
The USD/JPY it remains lower around 109.65, undermined by weak 10-year US Treasury yields. The EUR/USD falls back to 1.1900 awaiting final euro area manufacturing PMIs.
The GBP/USD It rises again above 1.3900 amid the US dollar retreat and optimism over UK vaccination as COVID cases in the country continue to decline. The relaxation of Brexit concerns also helps the pound, with the focus shifting to the Bank of England’s (BOE) monetary policy decision on Thursday.
The oro it is licking its wounds around $ 1,810 as the recovery in risk offsets the pullback in yields and the dollar. Investors are looking forward to the US ISM Manufacturing PMI for further business momentum.
The Bitcoin It has pulled back from above $ 40,000 amid slow trading seen across the crypto board.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
