The most recent analysis of US consumer confidence will be released today, and three of the top ten S&P 500 companies, namely, Microsoft, Alphabet A+C, and Amazon, will release their equity reports concurrently. This week’s key event is the FOMC decision on July 27 because the market has already priced in a 75 bps rate increase. The following change in the US Dollar will probably be determined by post-hike remarks.
The yield on the US 10-year Treasury note has remained constant at roughly 2.80%, as the US Dollar (DXY) appears to have reached a short-term low close under 106.00. In addition, the existing UST 2/10-year spread remains consistent at 23 bps. Gold is finding it difficult to change because the US currency has not changed much, and equity markets are watching and expecting the results schedule.
With US inflation and growth figures released following the Fed decision, Meta results are released in the equity market after the closing of the market, and on July 27, Apple, the largest company in the S&P 500, issues its latest results, the week’s end should be riskier.
It might be advisable for traders to remain passive and await the Fed’s conclusion prior to actually determining their following course of action.
According to data from retail traders, 8.28 traders for every 1 short trader means that 89.22% of traders are net long. Although the percentage of traders who are net-long has increased by 12.05% from July 25, and by 13.02% from the week before, the percentage of traders who are net-short has decreased by 1.62% and 3.90%, referring to the respective timetables.
The fact that traders are net-long signals that gold prices could keep falling. Traders normally take a contrarian stance against the sentiment of the majority.