OPEC+ agrees oil supply deal

“There is no such thing as failure. Failure is just life trying to move us in another direction.” – Oprah Winfrey

 

 

HEADLINES

 

 

• Dollar ends week strong on upbeat U.S. retail sales data
• GBP/USD falls under 1.3800 to one-week lows
• OPEC+ agrees oil supply boost after UAE, Saudi reach compromise
• Wall Street ends down as Delta COVID variant drives fears
• Moderna Surges as S&P 500 Inclusion Boosts Vaccine Maker
• Bitcoin Holds Above $30K but Price Chart Looks ‘Ugly’
• ECB policy meeting could be more of market mover than previously expected – MUFG

 

 

FOREX

 

 

Dollar ends week strong on upbeat U.S. retail sales data

 

The dollar edged higher on Friday, logging its largest weekly gain in a month, after upbeat retail sales data boosted expectations that economic growth accelerated in the second quarter. U.S. retail sales unexpectedly increased in June as demand for goods remained strong even as spending was shifting back to services.

 

GBP/USD falls under 1.3800 to one-week lows

 

The recovery of GBP/USD was short-lived and after reaching 1.3865, it turned to the downside. Recently broke under European session lows and fell to 1.3771, hitting the lowest level since July 9. It remains under 1.3800, on its way toward the lowest weekly close since April.

Comments from Bank of England officials during the week, pointing to the need to reduce asset purchases earlier than expected, failed to lift the pound significantly. “The impact on GBP was limited, partly because the next step in the eventual policy normalisation process (rate hikes) remains still some way off. Despite the increasing Covid-19 cases, the UK government will deliver the final part of the reopening/end of restrictions on 19 July”.

 

 

COMMODITIES

 

 

OPEC+ agrees oil supply boost after UAE, Saudi reach compromise

 

 

OPEC+ ministers agreed on Sunday to boost oil supply from August to cool prices which have climbed to 2-1/2 year highs as the global economy recovers from the coronavirus pandemic. From August until December 2021 the group will increase supply by a further 2 million bpd or 0.4 million bpd a month, OPEC said in a statement. It aims to fully phase out cuts by around September 2022.

 

 

STOCKS

 

 

Wall Street ends down as Delta COVID variant drives fears

 

Wall Street ended lower on Friday, weighed down by declines in Amazon, Apple and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.

 

Moderna Surges as S&P 500 Inclusion Boosts Vaccine Maker

 

Moderna Inc. jumped to a fresh record after S&P Dow Jones Indices said late on Thursday it plans to add the company to its benchmark index next week.

The Covid-19 vaccine maker rallied 10% to $286.43 Friday, the biggest move since March 31, as the company will replace Alexion Pharmaceuticals Inc. in the S&P 500 Index before the opening of trading on July 21. U.K. drugmaker AstraZeneca Plc’s roughly $39 billion deal for Alexion is set to close on the same day.

 

 

CRYPTO

 

 

Bitcoin Holds Above $30K but Price Chart Looks ‘Ugly’

 

Bitcoin bounced to around $32,200 after touching a 2.5-week low early Friday near $31,000. The largest cryptocurrency by market value may have been buoyed by a CoinDesk report that Bank of America has approved trading in bitcoin futures for some clients

 

 

ANALYSIS

 

 

ECB policy meeting could be more of market mover than previously expected – MUFG

 

“The main event risk for the EUR in the week ahead will be the ECB’s latest policy meeting. While the upcoming ECB policy meeting was previously viewed as a non-event for markets after the ECB just announced an extension of faster QE purchases in Q3 at their last meeting on 10th June, there is now a higher risk it will prove more market moving.”

“Decisive ECB policy action to back up the new policy framework could trigger a fresh EUR sell off next week at a time when other major central banks (BoE & Fed) are moving closer to raising rates. A failure to act would provide some relief for the EUR.”

 

 

CHART

 

 

Euro / Swiss franc – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/CHF has fallen below former resistance turned support at 1.087, which could again act as resistance on any bounce, while further resistance is found above from a falling trendline and the supply area near 1.092. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-ecb-policy-meeting-could-be-more-of-market-mover-than-previously-expected-mufg-202107161611
https://www.fxstreet.com/news/gbp-usd-falls-under-13800-to-one-week-lows-202107161512
https://www.reuters.com/business/energy/opec-meets-agree-oil-supply-boost-prices-rise-2021-07-18/
https://www.reuters.com/world/middle-east/dollar-track-weekly-gain-amid-virus-concerns-2021-07-16/
https://www.coindesk.com/market-wrap-bitcoin-above-30-price-chart-ugly
https://finance.yahoo.com/news/moderna-surges-p-500-inclusion-134105756.html