Rally pauses as Trump says other consulate closures possible - 23.7.2020

The Dollar weakening persists currently ahead of the US Labor Department report expected to show 1.3 million Americans likely sought unemployment benefits over the last week. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.1% Wednesday despite a report existing home sales jumped 20.7% in June. Both EUR/USD and GBP/USD continued climbing yesterday with both pairs higher currently. USD/JPY joined AUD/USD’s continued climbing yesterday with both yen and Australian dollar higher against the greenback currently despite Australia’s projections of record budget deficit.

Futures on three main US stock indexes are rising currently after a bullish session on Wednesday. Earnings season continues with Intel, AT&T, and Blackstone reporting quarterly results today. Stock indexes in the US ended higher after better than expected corporate earnings reports: of the 58 companies that have reported results so far, 77.6% have reported results above expectations, compared with the average of 65% who reported above consensus estimates in prior quarters. The three main US stock indexes recorded gains ranging from 0.2% to 0.6%. European stock indexes are rebounding currently after a pullback Wednesday. Asian indexes are mixed today after reports China may retaliate to US instruction to close the consulate in Houston by demanding to close the US consulate in Wuhan.

Brent is rebounding today. Prices slipped Wednesday after the US Energy Information Administration report that US crude oil inventories rose unexpectedly by 4.9 million barrels last week. The decision by the Organization of the Petroleum Exporting Countries and allied producers, collectively known as OPEC+, to start easing record production cuts of 9.7 million barrels per day to 7.7 million barrels per day starting in August through the end of the year is seen as a downside risk by traders against the background of rising US domestic crude stocks. The US oil benchmark West Texas Intermediate (WTI) futures retreated: September WTI edged lower 0.05% but is higher currently. September Brent crude closed 0.07% lower at $41.14 a barrel on Wednesday.