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The U.S. dollar traded on average almost unchanged against other major currencies on Thursday as seen in the performance of the USDX index, while the AUD/USD and NZD/USD pairs continued to rally towards a new two-months high.
Major cryptos gave up some of their intraday gains after reaching a high by around midday GMT with Bitcoin trading close to $25k, while Ethereum was just a bit below $1,950. A somewhat stronger retracement could be observed among some altcoins like Avalanche and Polkadot. The total estimated crypto market cap declined again below the $1.2 trillion level.
Stock market indices in Europe and the U.S. moved only very slightly at close with markets like the US 500, France 40 and Germany 40 ending the day almost unchanged. A strong upside could be observed among some Asian markets like the China A50 which was up by more than 1.5% on Thursday and the Japan 225 (Yen), as the index rallied towards a new high since January.
On Friday eurozone industrial production data will be published. From the U.S. import and export price statistics can be expected as well as the University of Michigan consumer sentiment survey.
The GBP/USD rate was trading fairly stable in the morning hours on Friday with only a brief and relatively small spike seen when significant economic fundamentals were released as the rate remained close around the 1.22-level. The GDP data for the second quarter was not as bad as some have expected with the quarterly rate of decline in real GDP amounting to only 0.1%, while in Q1 the UK economy still grew by 0.8%. The increased cost of living was a factor also affecting the economy.
Other fundamentals were a bit mixed with industrial production improving to 2.4% y/y growth (previous +1.4%), while manufacturing output grew only by 1.3% y/y (previous +2.3%).
Next week on Tuesday UK unemployment rate statistics for July will be released.
Gold and silver prices traded moderately lower on Thursday, while on a weekly basis the price of gold is still set to end this week for the fourth time in a row higher. Platinum and palladium prices meanwhile continued to rise with platinum at a new eight weeks high, while palladium prices reached a new three months high.
As in every week, on Friday the U.S. CFTC publishes its weekly Commitment of Traders (COT) statistics, which also include net speculative positions of many futures markets. Last week the number of net positions in gold futures strongly rebounded after recently hitting a new low since 2019.
Oil prices once again moved higher on Thursday, bringing the WTI crude oil CFD clearly on track to end this week with a significant gain – on track for its best weekly performance in at least three months.
The OPEC Monthly Oil Market Report might have contributed to the recent market move as the report released on Thursday indicated that the organisation expects that the global oil market would move into a surplus situation in the current quarter and that the current economic climate could reduce total demand. The monthly oil statistics for OECD countries released by the IEA also on Thursday on the other hand indicated an increase in demand forecasts driven in part by also higher natural gas prices, as reported by Bloomberg.
As usual on Friday the weekly U.S. Baker Hughes Oil Rig Count statistic will be released. Last week the number of operating oil rigs declined by seven according to that statistics.
Major stock market indices like the US 500 and US Tech 100 peaked on Thursday during the first hour of the regular trading session, reaching by then their respective three month high, though later on retraced and ended the day almost unchanged. On a weekly basis the US 500 is still on track to end the week for the fourth time in a row with a gain.
Especially companies in the energy sector (US Energy ETF +3.45%) were outperforming the market with the three best-performing S&P 500 index components coming from that sector including Schlumberger (+5.56%).
Walt Disney was also among the top-performing stocks that day as the stock price moved to the upside following the better-than-anticipated quarterly results, especially given the strong performance in terms of Disney+ subscribers.
The earnings season continues with DouYu publishing its quarterly results on Monday next week, then on Tuesday results will be released by Walmart, Home Depot, Sea and others.
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