Today the focus is on German economic sentiment and the EIA’s short-term energy outlook.
German ZEW Economic Sentiment for August will be released. Forecast: 56.7% If the data is higher than expected, the EUR could receive a positive push.
Assets to trade: EUR/USD, EUR/JPY, EUR/NZD
EIA Short-term Energy Outlook will be out. If the report shares strong oil market expectations, the oil price may go upwards.
Assets to trade: Brent
Concerns about weaker commodity demand were reported to have hit consumer prices in the UK. Affects GBP
The US Senate is now one step closer to finalizing $1trln infrastructure bill. The question will likely be concluded today. Affects USD
Cryptocurrency tax rules seem to have failed to be added to the infrastructure bill considered in the US Senate. Affects Bitcoin
Alibaba has suspended several of its staff members on an employee’s sexual assault allegations. Affects Alibaba
The market sentiment is pretty mixed because the impact factors mentioned above don’t provide much room for investors’ confidence. That is especially visible in the sector of precious metals. While silver is at the lows of the end of 2020, gold is under $1,800 again.
As it already touched the support of $1,700, it will be no surprise if it drops there again and goes further downwards.
The pair has been following a steady downtrend that suggests that it may drop to 0.66 soon.
The pair is now at the lower side of the horizontal channel. That means there is a probability that it bounces upwards towards 1.7000 to reach the upper side.