Stocks pause rally ahead of GDP data

By Peter Bukov|

Published: July 30 2020, 07:54 GMT+0

Stocks pause rally ahead of GDP data

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Sentiment seemed negative on Thursday morning, and stocks corrected their yesterday’s gains, while the US dollar advanced a little. 

Wednesday was a bullish day for US equities and indices closed notably higher. Markets received another boost from the Federal Reserve, which kept its benchmark rate near zero and suggested rates would remain in this range for some time. 

“The economy will need high levels of accommodative monetary policy for an extended period,” Fed Chairman Jerome Powell said.

The EURUSD pair touched the 1.18 level after the Fed’s decision, before correcting lower. On Thursday, it was seen at around 1.1750. Metals were down today, with silver dropping below 24 USD, and gold was trading near 1,950 USD. 

Later in the day, German and US GDP data for the second quarter are due, and investors are expecting massive declines. Moreover, US jobless claims are forecast to point to another rise in the claims, which might be taken negatively.