JASPER’S MARKET SQUAWK 26-07-2023

<h2>Markets Supported by Earnings Reports</h2>
<p>A rally started in the Asian session lost steam in Europe, but risk appetite returned in the US after better-than-expected earnings from some prominent names, including GM and 3M. DJIA recorded its 12th consecutive day in the green.</p>
<p><img decoding="async" loading="lazy" class="alignnone wp-image-24454 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-62.png" alt="" width="1915" height="914" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-62.png 1915w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-62-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-62-1024×489.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-62-768×367.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-62-1536×733.png 1536w" sizes="(max-width: 1915px) 100vw, 1915px" /><em><strong>Chart: GBPUSD</strong></em></p>
<h2>Key Factors for Today</h2>
<ul>
<li>GM Earnings Propel DJIA to 12th Consecutive Winning Day</li>
<li>Richmond Fed Manufacturing Beats Expectations, Dollar Dips</li>
<li>Crude Inventories Surprise Build, But IMF Outlook Brightens</li>
<li>Australian Inflation Hits One-Year Low, Aussie Volatile</li>
</ul>
<h2>DJ Boosted by GM Earnings Report, Recording 12-Day Streak</h2>
<p>Dow rose for the 12th session in a raw, recording its longest winning streak since February 2017, driven by positive earnings led by General Motors (GM). Whether the index completes a 1987 record today will depend on the FOMC. 35260 remains short-term support, with expected resistance at 35880.</p>
<h2>Richmond Fed Manufacturing Index Beats</h2>
<p>The July reading of the Richmond Fed manufacturing index came in at -9 compared to the -10 forecast, but the volume of new orders fell faster (-20) than the prior month (-16). July consumer confidence rose to 117.0, well above the forecast of 110.5, above the 110.1 prior (revised higher). The dollar index fell 0.15% on Tuesday as the Federal Reserve is expected to end its two-day policy meeting, helping Cable raise 0.60% to $1.2900. $ 1.2820 and $1.2978 are near-term levels to watch.</p>
<h2>Crude Inventories Grow, But Better Economic Outlook</h2>
<p>The API reported a surprise build of 1.3M bbl this week, compared to expectations of a -2.0M drawdown. The IMF upgraded its global economic outlook, seeing the world economy growing at 3.0% this year compared to 2.8% in the prior forecast. Sees the US growing at 1.8% compared to 1.6% in previous projections. It kept its forecast for China’s growth at 5.2%. WTI ticked 0.60% higher but failed to extend as high as to reclaim the $80/bbl barrier, opening up support at $77.30/bbl. Higher up lies the $81/bbl level.</p>
<h2>Australian Inflation Falls to 1-Year Low</h2>
<p>Australia has experienced a second consecutive quarter of lower annual Inflation, with CPI falling to 6% YoY in June, reaching a one-year low. Treasurer Jim Chalmers acknowledged the progress but wished for a quicker moderation of inflation. Aussie closed Tuesday 0.80% higher, already retested yesterday’s low at $0.6738 but unable to move past the high of $0.6792. The next stop for bulls is at $0.6821.</p>
<h2>On The Docket</h2>
<ul>
<li>EIA Crude Oil Stock Change</li>
<li>Fed Interest Rate Decision</li>
<li>Fed Press Conference</li>
<li>US Building Permits</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie 0.40% down, while Kiwi 0.04% higher</li>
<li>Euro 0.10% higher, while pound down by 0.03%</li>
<li>Japanese Yen 0.10% lower, Swissy by -0.03%</li>
<li>Loonie down by 0.08%</li>
<li>Gold 0.05 up, while Silver down by 0.26%</li>
<li>Crude and brent up by 0.62% each</li>
<li>Natural gas fell by 0.33%</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-26-07-2023-24450/">JASPER’S MARKET SQUAWK 26-07-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>