Oil Stabilizes at a High Level Amid Demand Recovery and Supply Cuts

market news summary

Christine Lagarde, the President of the European Central Bank, finds the recently published Gross Domestic Product (GDP) data from certain eurozone member states highly encouraging. According to her, the latest data firmly underpins their expectations of a 0.9% growth in the eurozone’s GDP for the current year.

The Japanese currency experienced its largest fluctuations in several months on Friday, after the Bank of Japan adjusted its policy for yield curve control, raising questions among investors about whether the bank’s policy will ultimately undergo a transformation.

The markets are awaiting a series of important economic data this week, including the Bank of England’s interest rate decision next Thursday, as well as non-farm payroll figures and unemployment rates in the United States.

Dollar Index (USDX)

Last week’s data showed that the US economy grew at a faster pace than expected in the second quarter, boosting the chances of avoiding a recession.

These strong figures have propelled the dollar index and the yields of 10-year US Treasury bonds to their highest levels in two weeks. Currently, the dollar index is trading at $101.60 with bullish momentum.

Pivot point: 101.45

Resistance level	Support level
101.80	101.05
102.15	100.70
102.50	100.35

Spot Gold (XAUUSD)

On Friday, July 28, gold prices recovered slightly from their two-week low after strong US economic data triggered a selling wave in Thursday’s session. However, gold ended the week with relatively minor losses.

It concluded the week with a decline of 0.07% as the US Federal Reserve and the European Central Bank continued to raise interest rates, keeping their options open for further actions.

Pivot point: 1955

Resistance level	Support level
1966	1948
1974	1937
1984	1930

Dow Jones Index (DJ30ft – US30)

The primary US stock indices wrapped up last week’s trading on a positive note, buoyed by increasing investor confidence in the outlook of the US economy. This confidence was bolstered by the strong earnings reports from major technology companies, alongside the release of encouraging economic data and announcements from central banks.

According to preliminary data, the S&P 500 index closed higher by 44.32 points, or 0.98%, at 4581.73 points, while the Nasdaq index increased by 262.47 points, or 1.87%, reaching 14312.58 points.

The Dow Jones Industrial Average also rose by 169.42 points, or 0.48%, to reach 35452.14 points, but it marked the end of a 13-day winning streak, the longest such streak since 1987.

Pivot point: 35550

Resistance level	Support level
35730	35395
35880	35220
36060	35065

US Crude (USOUSD)

Oil prices rose at the end of Friday’s trading, marking the fifth consecutive week of gains, amid investor optimism about the continued price increase due to demand recovery and supply cuts.

Brent crude rose by 75 cents to $84.99 per barrel at Friday’s closing, while West Texas Intermediate (WTI) crude increased by 49 cents to $80.58 per barrel. Currently, oil prices are trading near these levels.

Pivot point: 80.10

Resistance level	Support level
81.20	79.55
81.75	78.50
82.80	77.90

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