Market Overview
The U.S. dollar gained strength as fresh insights from the Federal Reserve’s July meeting signaled a continued commitment to raising interest rates in the fight against inflation. Policymakers expressed concerns about persistent inflationary pressures and emphasized that unless economic conditions shift meaningfully, further rate hikes are likely on the table.
The meeting summary noted, “With inflation still exceeding the Fed’s target and labor market conditions remaining tight, most participants agreed that upward pressure on inflation would necessitate additional tightening.”
Meanwhile, European markets experienced a decline on Wednesday, largely due to weakness in bank stocks. Investor sentiment was weighed down by signs of a slowdown in China’s economic activity. In the UK, inflation worries added further strain to British equities, as ongoing price pressures clouded the economic outlook.
Dollar Index (USDX)
The U.S. Dollar Index continued its upward momentum, bolstered by solid economic data and growing expectations of a prolonged period of tighter monetary policy from the Federal Reserve. While some policymakers signaled after the meeting that additional hikes may not be urgent, the overall tone reflected caution and a unified stance toward achieving the 2% inflation target over time.
- Pivot Point: 103.15
- Resistance Levels: 103.55 • 103.75 • 104.15
- Support Levels: 102.95 • 102.55 • 102.35
Spot Gold (XAU/USD)
Gold prices hit a five-month low on Thursday as a firmer dollar and rising U.S. Treasury yields weighed heavily on the metal. The stronger dollar made gold more expensive for holders of other currencies, while higher bond yields reduced gold’s appeal as a non-yielding asset.
- Lowest Price: $1891.70 per ounce (since March 15)
- Pivot Point: 1896
- Resistance Levels: 1901 • 1912 • 1917
- Support Levels: 1886 • 1880 • 1870
Dow Jones Industrial Average (DJ30ft – US30)
U.S. stock markets extended their losses for a second straight session on Wednesday, with investors reacting to concerns over prolonged high interest rates. The Dow Jones fell by approximately 180 points (0.5%), marking its lowest close in a month. The S&P 500 also retreated, down 0.75%, led by a slump in financials, particularly Bank of America.
- Pivot Point: 34,945
- Resistance Levels: 35,085 • 35,330 • 35,470
- Support Levels: 34,695 • 34,555 • 34,310
U.S. Crude Oil (USOUSD)
Despite a significant drop in U.S. crude inventories, oil prices slipped on Wednesday as markets digested concerns over slowing growth in China. Investors are also grappling with the potential for future supply shortages in the U.S., creating a complex environment for oil pricing.
- Brent Crude: Fell $1.44 (−1.7%) to $83.45/barrel
- WTI Crude: Dropped $1.61 (−2%) to $79.38/barrel
- Pivot Point: 79.90
- Resistance Levels: 80.75 • 82.25 • 83.10
- Support Levels: 78.40 • 77.55 • 76.05
Risk Disclosure
Trading involves risk. All investments, particularly leveraged instruments, carry the potential for both profit and loss. Leveraged trading amplifies exposure, which means both gains and losses can exceed your initial investment. Before participating in any trading activity, ensure you fully understand the risks involved, assess your financial situation, and seek professional advice if necessary. Never invest more than you can afford to lose.