The Dollar Rose, Supported by the Growth of the US Economy

market news summary

Meta Platforms’ stock (the company behind Facebook) surged by 9% during trading on Thursday, July 27, adding $69 billion to its market value after announcing strong earnings in the second quarter.

European stock indices also rose at the end of trading on Thursday, July 27, following the central bank’s decision on monetary policy.

The European Central Bank raised interest rates for the ninth consecutive time yesterday, Thursday, but it also strengthened the possibility of stopping the rate hikes next month, as policymakers are being pulled in conflicting directions due to high inflation and recessionary concerns.

Dollar Index (USDX)

The dollar rose after the release of a set of important US data that prompted the Federal Reserve to continue its tight monetary policy.

Yesterday’s data provided a strong impetus for the Federal Reserve to maintain its tight monetary policy, as it indicated the economy’s continued robustness and growth exceeding expectations. The encouraging figures, coupled with a decrease in weekly unemployment claims, further reinforced the notion of a resilient labor market. As a result, we can confidently infer that the data had a positive impact on the dollar’s performance.

Pivot point: 101.15

Resistance level	Support level
102.00	100.65
101.45	99.85
103.25	99.40

Spot Gold (XAUUSD)

Gold prices experienced a significant decline during Thursday’s trading session, following the release of a set of important US data that encouraged the Federal Reserve to maintain its tight monetary policy.

Currently, gold is trading at levels around $1954 per ounce.

Pivot point: 1956

Resistance level	Support level
1971	1931
1996	1917
2010	1905

Dow Jones Index (DJ30ft – US30)

On Thursday’s session, the US stock indices closed with collective declines as the yield on the 10-year US Treasury bonds surged sharply, following news that the Bank of Japan would allow long-term interest rates to rise.

A report from the Department of Commerce showed that the economy grew at a faster pace than expected in the second quarter, with the Gross Domestic Product (GDP) advancing by 2.4%, compared to the estimated 1.8%.

As a result of these developments, the Dow Jones Industrial Average (DJIA) dropped by 0.67%, approximately 237 points, ending its longest daily winning streak since 1987, as it had risen for 13 consecutive sessions.

Pivot point: 35545

Resistance level	Support level
35740	35250
36035	35050
36235	34750

US Crude (USOUSD)

Crude oil closed higher on Thursday, surpassing $84 per barrel for Brent crude for the first time since April. This increase was supported by supply constraints following the production cuts by the OPEC+ group, along with renewed optimism about Chinese demand recovery and global economic growth.

Brent crude closed up $1.32, or 1.6%, at $84.35 per barrel, while West Texas Intermediate (WTI) crude closed higher by $1.31, or 1.7%, at $80.09 per barrel.

Pivot point: 79.75

Resistance level	Support level
80.60	78.90
81.45	78.00
82.35	77.15

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