JASPER’S MARKET SQUAWK 25-07-2023

<h2>Markets Drifted Higher Ahead of Major Risk Events</h2>
<p>US and Asian markets generally drifted upwards, while European shares were underperforming as traders braced for more hikes from major central banks this week. The dollar index advanced on a weaker Euro.</p>
<p><img decoding="async" loading="lazy" class="alignnone wp-image-24439 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-61.png" alt="" width="1921" height="915" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-61.png 1921w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-61-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-61-1024×488.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-61-768×366.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-61-1536×732.png 1536w" sizes="(max-width: 1921px) 100vw, 1921px" /><em><strong>Chart: EURUSD</strong></em></p>
<h2>Factors for Today</h2>
<ul>
<li>Eurozone PMIs Disappoints Again, Bringing $1.10 Back Into The Spotlight</li>
<li>Cable Falls For 7th Day Straight As UK PMI Slides Below Expectations</li>
<li>DJIA Reports 11th Consecutive Gain After Upbeat US PMIs</li>
<li>Chevron Q2 Earnings Help Boost WTI to 3-Month High Shy of $80/bbl</li>
</ul>
<h2>Eurozone PMIs Bring $1.10 Back Into The Spotlight</h2>
<p>European markets lost risk appetite after flash PMIs substantially missed expectations. Eurozone Preliminary Manufacturing PMI came in at 42.7 compared to 43.5 expected, the thirteenth consecutive contraction and the worst since May 2020. After Europe managed to avoid a technical recession at the start of the year, investors have expressed concern that the ECB’s continued aggressive stance would weigh on the economic recovery. EUR/USD fell for a 5th session straight, aiming at $1.10, whereas resistance is expected at $1.11.</p>
<h2>Cable Records 7-Day Losing Streak After Downbeat PMI</h2>
<p>UK Preliminary PMI at 45.0, below the 46.0 expected, and the twelfth time in a row that it has been in contraction. Cable saw its seventh day of drops in a row, finding support at $1.28 but also exposing $1.2740 so long it trades beneath $1.2885.</p>
<h2>DJIA Reports 11th Straight Gain After Better US PMIs</h2>
<p>Flash US Manufacturing PMI exceeded expectations at 49.0 compared to 46.2 expected, recording the third month of contraction but the best since April. Services underperformed, with the lowest result since the start of the year, but still in expansion. Treasuries were weaker going into the FOMC meeting, which is broadly expected to hike rates by 25bps. Above 35200, the bulls might be more interested in 35550.</p>
<h2>Chevron Q2 Earnings Assist WTI to 3-Month High</h2>
<p>Chevron pre-announced its earnings and announced leadership changes, reporting a net profit of $5.77 billion for Q2. The better-than-anticipated results provided some buoyancy to crude prices otherwise affected by a stronger dollar. The commodity reached a 3-month high shy of $80/bbl, rising nearly 2.5% intraday. Next resistance is expected at $81/bbl, while support remains at $77.50/bbl.</p>
<h2>On The Docket</h2>
<ul>
<li>German Ifo Business Climate</li>
<li>CBI Industrial Trends Orders</li>
<li>S&amp;P/Case-Shiller Home Price</li>
<li>CB Consumer Confidence</li>
<li>API Crude Oil Stock Change</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie 0.30% up, while Kiwi 0.08% higher</li>
<li>Euro 0.06% higher, pound by 0.09%</li>
<li>Japanese Yen and Swissy 0.03% up</li>
<li>Loonie up by 0.04%</li>
<li>Gold is flat, while Silver is up by 0.03%</li>
<li>Crude and brent are up 0.27% and 0.22%</li>
<li>Natural gas is higher by 1.71%</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-25-07-2023-24435/">JASPER’S MARKET SQUAWK 25-07-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>