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China’s payback weighs on markets, boosts dollar, PMIs, coronavirus figures eyed

Sino-American tensions: China has announced the closure of the US consulate in Chengdu, southwest China, in response for America’s shuttering of the consulate in Houston. Beijing says Washington is responsible for the conflict and US Secretary of State Mike Pompeo called the Chinese regime “totalitarian.”

Fiscal stimulus talks: Republicans and Democrats made progress in talks for the next fiscal relief package as the GOP dropped its demand for a payroll tax cut. However, the next round of talks will wait for Monday. One of the urgent topics on the table is extending federal unemployment benefits which expire at the end of the month.

Double-dip recession? Weekly US jobless claims rose to around 1.4 million in the week ending on July 17, the one when Non-Farm Payrolls surveys are held. Ending the long streak of declining applications raises concerns about the labor market and a potential double-dip recession.

Markit’s preliminary US Purchasing Managers’ Indexes for July are set to show a return to growth and sales of new homes carry expectations for further recovery.

S&P 500 futures and Asian shares responded by extending their losses while the safe-haven dollar made a comeback, recovering some of its losses in recent days.

Gold prices have stabilized below $1,900, the highest since September 2011 after nearing the round number on Thursday. Silver also remains bid.

EUR/USD is struggling with 1.16 after hitting 1.1625 late on Thursday, the highest since September 2018. The euro continues benefiting from the EU recovery fund agreed early this week, which keeps the continent’s bonds bid. Markit’s preliminary PMIs for July are set to show ongoing improvement.

GBP/USD is trading around 1.27, paring some of its gains amid dollar strength and the Brexit impasse. EU Chief negotiator Michel Barnier and his British counterpart David Frost took stock of talks on future relations and acknowledged little progress has been made.

The UK GfK Consumer Confidence missed with -27 and retail sales figures for June are eyed. Preliminary PMIs for July are due out later in the day.

The yen is benefiting from safe-haven demand, with USD/JPY dropping below 106.50. Tokyo’s coronavirus situation worries officials.

Commodity currencies are on the back foot amid the risk-off mood, with the Aussie shrugging off upbeat PMIs and the loonie ignoring the gradual advance in oil prices. WTI Oil has consolidated its gains above $41.

https://www.fxstreet.com/news/forex-today-chinas-payback-weighs-on-markets-boosts-dollar-pmis-coronavirus-figures-eyed-202007240535



According to Trading Central (3rd party RIA) the NASDAQ is short positions below 10770.00 with targets at 10500.00 & 10300.00 in extension.

Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10836457

NASDAQ
Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 10300
0.5€ 22,584.12€ 11,292.06€ 7,333.91
1€ 45,168.25€ 22,584.12€ 14,667.82
5€ 225,841.24€ 112,920.62€ 73,339.09
10€ 451,682.48€ 225,841.24€ 146,678.17
20€ 903,364.97€ 451,682.48€ 293,356.34

According to Trading Central (3rd party RIA) the GBPUSD is long positions above 1.2400 with targets at 1.2815 & 1.2980 in extension.

Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10836628

GBPUSD
Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1.2980
1€ 3,660.19€ 1,830.09€ 2,240.68
5€ 18,300.94€ 9,150.47€ 11,203.40
10€ 36,601.88€ 18,300.94€ 22,406.80
25€ 91,504.70€ 45,752.35€ 56,017.00
50€ 183,009.41€ 91,504.70€ 112,034.00

According to Trading Central (3rd party RIA) the USDCHF is short positions below 0.9530 with targets at 0.9255 & 0.9175 in extension.

Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10834296

USDCHF
Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 0.9175
1€ 2,876.04€ 1,438.02€ 698.70
5€ 14,380.21€ 7,190.11€ 3,493.50
10€ 28,760.43€ 14,380.21€ 6,987.00
25€ 71,901.06€ 35,950.53€ 17,467.50
50€ 143,802.13€ 71,901.06€ 34,935.00