Afternoon Market Update: Forex made simple, Learn forex trading

Chump Profit Daily Afternoon Rundown - Market Update - July 13, 2023

Market Summary: Forex made simple, Learn forex trading

Wall Street received an extra dose of encouragement to bid up stocks after another inflation report reinforced bets that the Federal Reserve is approaching an interest-rate peak. Tech mega caps led gains, with the Nasdaq 100 up 1%. Amazon.com Inc. hit a 10-month high after reporting record sales during its Prime Day sale, and Google's parent Alphabet Inc. rose 4%. The market sentiment remains positive, with hopes of decreasing inflation and resilient economic growth.

Inflation and Monetary Policy: Forex made simple, Learn forex trading

US producer prices increased 0.1% in June from a year earlier, rising at the slowest pace in nearly three years, signalling a continued deceleration in pipeline inflationary pressures. The recent economic figures have sent clear signals that the Fed's policy is working, but with core prices still above the central bank's target, it may be too early to claim victory against inflation.

Corporate Earnings:

JPMorgan Chase & Co., Citigroup Inc., and Wells Fargo & Co. are set to report results on Friday, followed by other industry heavyweights next week. Expenses and net interest income will be closely watched as the industry copes with a slowdown in deals and rising rates.

Leverage Forex Trading & Earnings Season: A Simple Guide for Beginners

Other News:

In other corporate news, Delta Air Lines Inc. reported better-than-expected results for the prior three months and expects to make more money this quarter than anticipated. PepsiCo Inc. raised its sales and earnings estimates once again after a strong quarter. Exxon Mobil Corp. agreed to buy Denbury Inc. for $4.9 billion, its largest acquisition in six years.

Market Moves:

Here are some of the main moves in the markets:

Stocks:

- The S&P 500 rose 0.5% as of 10:48 a.m. New York time.

- The Nasdaq 100 rose 1%.

- The Dow Jones Industrial Average rose 0.2%.

- The Stoxx Europe 600 rose 0.7%.

- The MSCI World index rose 0.9%.

Currencies:

- The Bloomberg Dollar Spot Index fell 0.4%.

- The euro rose 0.5% to $1.1182.

- The British pound rose 0.8% to $1.3097.

- The Japanese yen was little changed at 138.38 per dollar.

Cryptocurrencies:

- Bitcoin rose 0.8% to $30,581.97.

- Ether rose 0.5% to $1,882.96.

Bonds:

- The yield on 10-year Treasuries declined four basis points to 3.82%.

- Germany's 10-year yield declined eight basis points to 2.50%.

- Britain's 10-year yield declined six basis points to 4.46%.

Commodities:

- West Texas Intermediate crude rose 1.3% to $76.70 a barrel.

- Gold futures rose 0.1% to $1,964.20 an ounce.

Trading Opportunities:

1. Forex: Traders may consider monitoring the EUR/USD and GBP/USD currency pairs for potential trading opportunities, given the rise in the euro and the British pound against the US dollar. Stay updated on economic data and central bank policy decisions.

2. Stocks: Tech mega-caps, such as Amazon.com Inc. and Alphabet Inc., have shown strong performance. Traders may consider monitoring these stocks for potential bullish opportunities. Additionally, keep an eye on the upcoming corporate earnings reports, starting with JPMorgan Chase & Co., Citigroup Inc., and Wells Fargo & Co., as they may influence market sentiment.

3. Oil: The shutdown of the El Feel oil field in Libya has contributed to the increase in oil prices. Traders can monitor the price of Brent crude for potential upward trends and consider positions in related oil stocks.

Remember, these trading ideas are for informational purposes only and not financial advice. Conduct thorough research, analyse market conditions, and use proper risk management strategies before making any trading decisions.

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Forex made simple, Learn forex trading

Author: Kyriacos Kyriacou, experienced trader, broker, and educator in forex. He has a B.A. in Economics from Liverpool University and an M.S. in Marketing from Surrey University