US futures jump after upbeat results from Walmart and Home Depot

US futures turned positive as investors reacted to strong corporate earnings from Walmart and Home Depot. Walmart, the biggest retailer in the US, reported more than $137.74 billion in revenue, $2 billion higher than what analysts were expecting. It reported earnings per share of $1.56, which was higher than the expected $1.26. This growth was driven partially by a 97% increase in e-commerce sales. Meanwhile, Home Depot sales rose by 23% in the quarter to $38.05 billion. This was higher than the median estimate of $34.53 billion. Its earnings per share increased to $4.02. The futures also rose because of a planned relief bill vote that will be introduced by Senate Republicans.

The US dollar was under pressure today as investors predicted trouble ahead for the US economy. The greenback dropped against all currencies that make up the index. For example, it dropped by 0.28% against the euro, 0.60% against the British pound, and by 0.45% against the Japanese yen. The biggest concern among investors is that the US will be left behind as its peers in Europe and Asia recover. For one, the number of coronavirus cases in the country is still rising and congress is heading for its August recess without a stimulus deal. Data released by the Census Bureau showed that building permits increased to 1.49 million while housing starts increased to 1.49 million.

The Australian dollar rose today as investors reacted to the Reserve Bank of Australia (RBA) minutes. In the minutes, the bank explained its rationale for the decision it delivered in the first week of the month. The bank expects the unemployment rate to rise to 10% while inflation will remain below the target of 2%. Also, it expects the economy to have a record contraction of 6%. Also, the bank reiterated that the biggest risk is the rising number of coronavirus cases in the country.

EUR/USD

The EUR/USD pair rose to an intraday high of 1.1906, which is the highest level since August 6. On the daily chart, the price is above the ascending trend line that is shown in white. The price is above the 50-day and 100-day exponential moving averages. The on-balance volume has risen to its highest level this year. After raising in the past six consecutive days, it seems like bulls are in control, which means that the price will continue rising.

GBP/USD

The GBP/USD pair rose to an intraday high of 1.3187, which is the highest it has been this month. The price is above the short and medium-term moving averages. It is also along the 78.6% Fibonacci retracement level on the daily chart. The price is also above the ascending trend line and has also formed a bullish pennant pattern. Therefore, the price is likely to continue rising as bulls aim for the next resistance at 1.3200.

USD/JPY

The USD/JPY pair dropped to an intraday low of 105.42. On the four-hour chart, the price is below the 50-day and 100-day exponential moving averages. The price is below the 23.6% Fibonacci Retracement level. Also, the RSI is below the oversold level of 30 while the price is along the lower line of the Bollinger Bands. The price is likely to continue falling as bears target the next support at 105.00.