News, Trends, & Analytics 05.08.2021

Today the focus is on US mortgages, UK private sector growth, German service sector.

 

Calendar

8:30 UTC

The British Construction PMI for July will be released. Forecast: 64.0. If the results are lower than predicted the GBP could receive a negative push.

Assets to trade: GBP/USD, EUR/GBP, GBP/JPY


11:00 UTC

The Bank of England’s Interest Rate Decision will be announced. Forecast: 0.10%. If the new rate is higher than expected the GBP could receive a positive push.

Assets to trade: GBP/USD, EUR/GBP, GBP/JPY


12:30 UTC

US Initial Jobless Claims will be reported. Forecast: 384K. If the data is lower than expected the USD could receive a positive push.

Assets to trade: USD/JPY, USD/NOK, USD/CHF

 

News

The 30-year US mortgage rate fell below 3% last week for the first time since February as interest rates globally drifted lower. Affects USD


British private-sector growth slowed sharply last month due to supply-chain bottlenecks and high worker absences prompted by COVID-19 isolation requirements. Affects GBP


Activity in Germany’s service sector grew in July at the fastest pace on record, a survey indicated on Wednesday, as businesses enjoyed the benefit of the economy reopening after COVID-19 restrictions were lifted. Affects DAX


Eurozone business activity roared in July, expanding at its fastest pace in 15 years, as the lifting of more coronavirus restrictions and an accelerated vaccine drive injected life into the bloc’s dominant service industry, a survey showed. Affects EUR


Fresh outbreaks of the Delta coronavirus variant in Southeast Asia have crippled its factory sector, disrupting global supplies of goods such as rubber gloves, semiconductors, and SUVs and threatening the $3 trillion region’s recovery. Affects Hang Seng

 

Technical Analysis

DAX

The German economy has been recovering smoothly as growth hits record highs and people return to spending. Fears of further supply chain shortages from Southeast Asian countries in the grips of Delta variant spreads loom over the future and could dampen recovery hopes.

The index has shown a slight uptrend and is testing its resistance zone with a Bullish Engulfing candle.

Netflix

The entertainment service is testing its support level around 511, the Three Black Crows may not be enough to break below it.

EUR/AUD

The pair has been flagging upward, though the Three Black Crows pattern is present, the overall trend is up, and will likely continue.


Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.

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