Global stocks declined today as traders focused on corporate earnings from some of the biggest companies in the world. In Europe, the DAX index declined by 2.80% while the FTSE 100 and Stoxx 50 are down by 1.85% and 2%, respectively. In the United States, futures tied to the Dow Jones and the S&P have fallen by almost 1%. Earlier today, Royal Dutch Shell announced a multibillion-dollar loss while Credit Suisse profit rose by 24%. In Germany, Volkswagen made a loss of almost $1 billion forcing the company to cut its dividends. Later today, Apple, Alphabet, and Amazon, which have a combined market cap of more than $3 trillion will release their earnings.

The euro declined slightly as traders reflected on the mixed economic data from Europe. In a report earlier today, the German statistics office said that the country’s economy contracted by 11.7% in the second quarter, in what was the worst quarter in decades. The economy contracted by 10.1% on a QoQ basis. The country’s unemployment rate remained unchanged at 6.4%. Meanwhile, the industrial sentiment in Europe improved slightly to -16.2 while sentiment in the services industry improved to -26.1.

The US dollar gained against most currencies as traders reflected on the Fed interest rate decision. In its July meeting, the bank left interest rates unchanged in the range of 0% and 0.25%. It also left the open-ended quantitative easing policy in place and pledged to do more. The currency also reacted to the first preliminary Q2 GDP data from the US. The data from BLS showed that the economy contracted by 32.9% in the quarter. That was better than the 34.1 that analysts polled by Reuters were expecting. Meanwhile, data showed that initial jobless claims rose to 1.43 million as more states put brakes on their reopening process. This was higher than the 1.42 million that was reported last week.



The EUR/USD pair is trading at 1.1747, which is lower than this week’s high of 1.1805. On the four-hour chart, the price is above the 50-day and 100-day exponential moving averages. The signal line of the MACD has formed a crossover with the main line, which is a bearish signal. However, it is also forming a bullish pennant pattern. Therefore, the pair is likely to continue rising as bulls aim to move above the 1.1800 resistance.




The GBP/USD pair spiked to an intraday high of 1.3015, which is the highest it has been since March this year. On the four-hour chart, the price is significantly higher than the 50-day and 100-day exponential moving averages. Also, the accumulation and distribution indicator has moved to the highest level since April. The RSI has remained above the overbought level of 70. Therefore, it seems like bears are in total control, which means that the price will continue to move higher. Still, there is a possibility of a pullback happening.




The DAX index declined sharply today as traders reacted to weak earnings from Germany. The index is trading at €12,477, which is the lowest it has been since July 10. The price is along the 50-day EMA but is also slightly above the 100-day EMA. More importantly, the index moved below the ascending trend line that is shown in white. Therefore, it seems like bears are now in charge, which will see the index continue falling to the 38.2% retracement level at €11,667.


General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD weaker ahead of RBA’s monetary policy decision

The Aussie is weak, despite receding dollar’s demand and the robust performance of US indexes. Coronavirus developments hit the commodity-linked currency ahead of the RBA.


Gold: This just might be as good as it gets for gold

The price of gold is trading at $1,975 within a range of between $1,960.54 and $1,986.76 at the time of writing, virtually flat on the day in consolidation having eeked out a fresh all-time high.

Gold News

USD/JPY struggling to retain the 106.00 level

The USD/JPY pair traded as high as 106.46 on Monday but struggles to retain gains above the 106.00 level amid lack of dollar’s demand.


Ethereum on its way to regaining $400 while BNB hit a new high at $22.5

BTC/USD is more stable than other coins right now but has been able to recover from its crash towards $10,500. It is currently trading at $11,369 and faces very little resistance until $14,000.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News

Forex Majors