Major equity indexes in the United States started the day on a weak note and extended their losses as tech-giants continued to suffer sharp losses on disappointing earnings results. The tech-heavy Nasdaq 100 index dropped as much as 1.5% declining for a third-straight session. Netflix erased nearly 5% to lead the losses in the FAANG (Facebook, Amazon, Apple, Netflix, Google) group.
Looking ahead today on the US data front sees the release of the June Personal Consumption Expenditures (PCE) inflation report along with personal income & expenditure figures for the month of June all came in at estimates, yet Core Personal Consumption Expenditures missed a 1.9% vs consensus of 2.0%. The FOMC starts two days of meeting in regards to setting monetary policy, market expectations our for the Fed keep interest rates at the current 2.0%.
From a technical perspective, the US dollar is weaker against all the major pairs overnight. Currently trading against the Australian Dollar (0.7408), Great British Pound (1.3134) and Japanese Yen (11.03). The EUR/USD pair traded within familiar levels and in a limited intraday range of 1.1720. Against the Euro, we continue to expect support to hold on moves approaching 1.1660 while now any upward push will likely meet resistance around 1.1720.