{"id":173569,"date":"2020-07-13T09:33:18","date_gmt":"2020-07-13T13:33:18","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=173569"},"modified":"2020-07-13T09:29:29","modified_gmt":"2020-07-13T13:29:29","slug":"risk-sentiment-under-threat-on-increased-tensions","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/risk-sentiment-under-threat-on-increased-tensions\/","title":{"rendered":"Risk Sentiment Under Threat On Increased Tensions"},"content":{"rendered":"
July 13, 2020<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Despite Antiviral Hopes, US Dollar Hangs on Headlines<\/strong><\/h3>\n

The optimistic Remdesivir tests provided support for the markets on Friday. However, despite that, the dollar closed last week negative and concerns around the pandemic are still strong.<\/p>\n

This is largely due to the increasing cases, as macro data remains dismal.<\/p>\n

With a light calendar scheduled for the day, the performance of the greenback will likely hang on technicals and political headlines.<\/p>\n

EU Recovery Fund Finally Seen with Optimism<\/strong><\/h3>\n

In Europe, debates over the EU\u2019s coronavirus recovery fund kept the euro\u2019s gains at 0.07% against the dollar last week.<\/p>\n

Growing optimism could push euro higher today, should the greenback\u2019s weakness prevail.<\/p>

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London Traders Keep a Close Eye on UK Data<\/strong><\/h3>\n

The pound\u2019s impressive 1.02% rally on Friday was attributed to gains over the UK\u2019s housing indicator. This supported the sentiment on Friday\u2019s close.<\/p>\n

With a similar bullish trend continuing during Monday\u2019s opening, the pound might remain near the 1.26 level ahead of UK retail sales. This is especially true as markets are expecting Brexit-related policy updates.<\/p>\n

Asian Markets Mirror Positive Sentiment<\/strong><\/h3>\n

The Asian market mirrored US sentiment last Friday. Sentiment experienced gains thanks to increasing iron and steel demand from China\u2019s industrial activity.<\/p>\n

According to this year\u2019s Government Work Report, GDP in China is expected to return to 3% growth in Q2. This allowed the rally to continue this morning.<\/p>\n

US Equities Driven by Stimulus Expectations, Corporate Earnings<\/strong><\/h3>\n

Indices rose last week in the US as an increase in cases supported the health care and technology sectors. Meanwhile, firms reported positive earnings reports.<\/p>\n

SPX500 gained +0.17% last week,\u00a0<\/strong>whereas the Nasdaq outperformed once again at +1.76 at Friday\u2019s close. The industrial index Dow Jones, however, ended the week on a negative footing, down 0.81%.<\/p>\n

We expect risk sentiment to prevail this coming week amid additional stimulus expected by the Fed.<\/p>\n

Gold Upbeat on Rising Tensions<\/strong><\/h3>\n

Friday ended with some profit-taking for gold. Risk appetite was readily seen in stock indices.<\/p>\n

The metal closed below the $1800,00 barrier after a 9-year high recorded last week.<\/p>\n

Weekend headlines around phase two of a trade deal between the US and China failing, as well as tariff threats against France, support the prices of gold.<\/p>\n

XAUUSD is trading 0.50% higher from Friday\u2019s close.<\/a><\/p>\n

WTI Affected By OPEC+ Revision<\/strong><\/h3>\n

A positive move on Friday saw oil climb back up over $40. This came amidst the IEA\u2019s upward revision for crude oil demand to 8.1 million bpd.<\/p>\n

WTI crude started off the week plummeting due to headlines that OPEC+ is set to ease record production cuts as coronavirus lockdowns lift.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Despite Antiviral Hopes, US Dollar Hangs on Headlines The optimistic Remdesivir tests provided support for the markets on Friday. However, despite that, the dollar closed last week negative and concerns around the pandemic are still strong. This is largely due to the increasing cases, as macro data remains dismal. With a light calendar […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-173569","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=173569"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173569\/revisions"}],"predecessor-version":[{"id":173574,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173569\/revisions\/173574"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=173569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=173569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=173569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}