Market Summary
Global financial markets saw a mix of optimism and caution to start the week, with notable headlines grabbing investor attention. On Tuesday, official data from Japan revealed a surprisingly strong 6% annualized growth rate for the second quarter — well above expectations and a positive signal for Asia’s second-largest economy.
Meanwhile in the U.S., Treasury Secretary Janet Yellen highlighted the impact of the Biden administration’s economic strategy, crediting it for a surge in private investment, record job creation, and a return to more stable inflation. Yellen also noted that many Americans are reporting improved financial wellbeing under current conditions.
However, the picture was more concerning in Russia, where the ruble has fallen 30% since the start of the year, hitting its lowest level in 17 years — a clear reflection of ongoing economic instability.
Dollar Index (USDX)
The U.S. Dollar Index gained 0.3%, hitting a new monthly high as traders positioned themselves ahead of key data releases. This week’s focus turns to U.S. retail sales figures on Tuesday and the Federal Reserve’s July meeting minutes on Wednesday — both events expected to shed light on the Fed’s stance regarding future rate adjustments.
- Pivot Point: 102.95
- Resistance Levels: 103.35 • 103.67 • 104.05
- Support Levels: 102.65 • 102.30 • 101.95
Spot Gold (XAU/USD)
Gold continued to slip on Monday, weighed down by the dollar’s strength. Despite mixed U.S. inflation data last week, investors are now awaiting new developments before making significant moves.
Futures contracts closed modestly lower at around $1944, while spot gold edged down 0.3% to $1907.40, touching its lowest level since July 6 earlier in the session.
- Pivot Point: 1908
- Resistance Levels: 1914 • 1922 • 1928
- Support Levels: 1901 • 1895 • 1887
Dow Jones Industrial Average (DJ30ft – US30)
U.S. stock indices closed higher on Monday, boosted by gains in major tech stocks. Market participants are also gearing up for a wave of retail earnings, with companies like Walmart and Target set to report this week. The upcoming July retail sales data will play a key role in shaping expectations for the Federal Reserve’s next rate decision, with markets currently pricing in an 89% probability of no hike in September.
The Dow Jones added around 62 points (+0.07%), ending the session above 35,300. The standout performer was Nvidia, which jumped 7%, notching its biggest daily gain in more than two months. The rally added approximately $72 billion to the chipmaker’s market cap — a clear reflection of investor enthusiasm for AI and tech-related growth.
- Pivot Point: 35,345
- Resistance Levels: 35,465 • 35,575 • 35,695
- Support Levels: 35,235 • 35,115 • 35,005
U.S. Crude Oil (USOUSD)
Oil prices declined Monday as fears over China’s sluggish economic recovery combined with a stronger U.S. dollar to interrupt a seven-week rally fueled by supply concerns.
West Texas Intermediate (WTI) crude fell $0.68 (−0.82%) to $82.51, while Brent crude dropped $0.60 (−0.69%) to close at $86.21.
- Pivot Point: 82.45
- Resistance Levels: 83.15 • 83.85 • 84.60
- Support Levels: 81.75 • 81.00 • 80.30
Risk Disclaimer
Investing carries inherent risks. All trading — particularly with leveraged products — involves the potential for both gains and losses. Leverage can magnify outcomes, meaning you could lose more than your original investment. Before entering any trade, assess your financial situation, knowledge, and risk tolerance carefully. Seek professional advice if needed, and never trade with funds you cannot afford to lose.