US DOLLAR INDEX STEADY AS US AND CHINA TENSIONS RISE

American stocks were volatile Tuesday as investors reflected on strong quarterly results by leading companies and hawkish statements by Fed officials. Uber, the biggest ride-sharing company in the world, said that its revenue rose by 105% to $8.07 billion. Its free cash flows rose to over $382 million. Further, Maersk, the second-biggest shipping and logistics company in the world, raised its full-year guidance. It expects that its operating profit will rise to $31 billion from the previous $24 billion. Similarly, Caterpillar said that its quarterly sales rose by 11% to $14.2 billion. The earnings season will continue on Wednesday with companies like Regeneron, New York Times, and Clorox among others.

The US dollar rose slightly after signs of a slowdown in the labor market emerged. Data by the Bureau of Labor Statistics (BLS) showed that the number of job vacancies slowed down sharply in June. The number of vacancies dropped from 11.3 million in May to 10.7 million in June. Economists polled by Reuters were expecting the figure to dip to 11 million. The BLS will publish the next official non-farm payroll data on Friday. The dollar also rose after Nancy Pelosi became the first American speaker to visit Taiwan in over 24 years. China swiftly condemned the visit and warned of retaliation.

The economic calendar will have several important events on Wednesday. In the US, the Energy Information Administration (EIA) will publish the latest inventories data. Analysts expect that inventories dropped by 467k barrels last week. These numbers will come as OPEC+ prepares for its upcoming meeting. The cartel will deliberate on whether to hike production as the world economy recovers. Other important data will be the latest services PMI data from the US and other countries. Further, the European Union will deliver the latest EU retail sales numbers.

EURUSD

The EURUSD pair declined to a low of 1.0190, lower than this week’s high of 1.0300. The pair has moved slightly below the upper side of the descending channel shown in yellow. It has moved below the 25-day moving average while the Stochastic Oscillator has moved to the oversold level. Similarly, the Average Directional Index (ADX) has tilted lower. It will likely resume the bullish trend as buyers target the support at 1.0300.

USDCHF

The USDCHF pair rose to a high of 0.9560, the highest level since July 29. This price is higher than last week’s low of 0.9468. It has moved between the middle and upper side of the Bollinger Bands while the DeMarker indicator has continued rising. The same is true with other oscillators like the Relative Vigor Index (RVI). The pair will likely resume the downward trend ahead of US jobs data.

NAS100

The Nasdaq 100 index bounced back after strong earnings by companies like Ferrari and Uber. It rose to a high of $13,050, which was the highest level since Friday. It has moved above the 25-day and 50-day EMA while the Relative Strength Index (RSI) has moved close to the overbought level. The pair will likely keep rising as bulls target the key resistance at $13,200.