- Stocks are rising modestly at the close of the week.
- The dollar cuts negative streak and cuts weekly losses.
- Metals remain under pressure and cryptocurrencies fall.
Wall Street futures point to an opening with modest gains, while European stocks advance modestly. The dollar recovers strongly due to a rise in Treasury bond yields.
green shoots
The S&P 500 futures up 0.36%, those of the Dow Jones 0.32% and the Nasdaq 0.40%. In Europe, the main markets operate with average profits of 0.10%.
In the United Kingdom it was known that the economy contracted 0.1% in the second quarter, which did not generate surprise since an even greater drop was expected. The pound did not suffer at the time, but as the hours went by it became the worst performer in the G10 group. GBP/USD is approaching 1.2100, while EUR/GBP is at two-week highs above 0.8480.
In the Eurozone, a higher than expected rise in industrial production for June was known. But the attention continues to be focused on the energy crisis with the focus on the Rhine at this time, which today would become impassable at a point in Germany due to the low water level, a product of the heat wave.
In the US, the preliminary consumer confidence index for August from the University of Michigan will be published, which also includes data on inflationary expectations. The officials of the Federal Reserve they continued with a “hawkish” message despite the drop in inflation in July. This contributes to the rise in Treasury bond yields and expectations of further increases in interest rates remain.
The stretch of treasury bond The 10-year bond rose from 2.75% to 2.90% on Thursday, while the 30-year bond edged closer to 3.20%. This is helping the dollar, which as measured by DXY, is rising for the first time on Friday after four straight days of declines. DXY is above 105.50 after falling to 104.62 yesterday, the lowest since June 30.
The Prayed it does not recover brightness affected by what happens with yields and the dollar. XAUUSD remains below $1,800 and tests support around $1,785. XAGUSD tests $20.20, which is the last defense for $20.00.
In Mexico, the central bank raised the interest rate by 75 basis points to 8.50%, the highest level since 2005. More hikes are expected. USD/MXN is trading below 20.00 at a 1.5 month low.
The prices of Petroleum they have turned negative for the day in the last hour, but are still on track to close the week with the biggest gain in four months. The barrel of WTI loses 1.5% on Friday and trades around $93.00.
The rise of cryptocurrencies has lost momentum. The Bitcoin it is below $24,000, down 1.90%. Ethereum falls 2.10% and trades at $1,865, but maintains a short-term bullish tone.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
