Markets Hold Neutral Bias as Earnings and Macro Data Send Mixed Signals; FX Draws Attention

The week is drawing to a close with financial markets remaining in a neutral environment, showing limited directional conviction. The latest earnings from Microsoft, Amazon, and Apple have helped stabilize sentiment in the technology sector, although the sector continues to display underlying weakness. Meanwhile, yesterday’s macroeconomic releases delivered mixed signals on both inflation and economic growth. At the same time, conflicting geopolitical developments continue to fuel uncertainty. As reflected by our proprietary scores, the overall picture is one of consolidation and waiting for clearer catalysts.

Some early clues may emerge from the foreign exchange market, where our scores show the U.S. Dollar Index falling below the 50-point threshold for the first time in more than two months, while the euro and the Swiss franc are gaining momentum. Meanwhile, futures are pointing to a positive opening for both European and U.S. equity markets.

Financial markets sentiment

Financial markets currently exhibit a neutral sentiment. Our intermarket analysis shows a Market Health Score of 78/100, indicating a positive underlying environment. The common theme across our intermarket indicators is compression, suggesting that despite the strong market activity seen in recent weeks, there is still a lack of genuine directional strength. Sentiment remains neutral but continues to maintain a risk-on bias.

Yesterday’s earnings releases triggered a pullback in the S&P 500/Nasdaq ratio, although weakness in the technology sector remains a key factor. As mentioned, the Dollar/Gold ratio, the Dow/Gold ratio, the Commodities/Bonds ratio, and the S&P 500/VIX ratio are all showing signs of fading momentum and increasing compression.

Global equities have moved back above their medium-term moving average following yesterday’s brief decline, although the short-term trend remains sideways. Bonds continue to trade below their long-term moving average, but price action there is also becoming increasingly subdued. Commodities remain close to their medium-term moving average.

Our Market Weather Map reinforces the view of financial markets lacking clear direction. Equities remain almost exactly at the neutral threshold, while both the technology sector and fixed income continue to show weakness. The U.S. dollar is losing momentum, while oil remains the only asset (among those represented on the map) approaching the 60-point level. Overall, more than 70% of the assets monitored by the Health Score system are currently scoring between 45 and 65 points—a broad neutral range—with only a handful of assets generating truly strong signals.

In the foreign exchange market, one noteworthy development—at this stage simply as a statistical observation rather than a signal warranting broad interpretation—is the Swiss franc’s 12-point jump in a single day. At the same time, the U.S. Dollar Index lost seven score points in one session, recording its first close below the 50-point threshold in more than two and a half months.

Normalized Health Score performance of FXF (Swiss Franc) and EUR/USD from June 25 to July 30, 2026

Global Futures – Pre-Market Sentiment

Pre-Market Futures: Global futures are indicating a risk-on sentiment, with an average gain of +1.27%. U.S. futures are up +0.69%, European futures are up +0.98%, while Asian futures are marginally positive at +0.01%.

Macroeconomic calendar

On the macroeconomic front, today’s key releases include the July 2026 Eurozone inflation data, Japan’s industrial production figures, and the final University of Michigan Consumer Sentiment Index in the United States. Meanwhile, the Bank of Japan has kept interest rates unchanged, while China’s private-sector PMI survey has slipped back below the 50-point expansion threshold.

ACTIVATE YOUR 14-DAY FREE TRIAL NOW. CLICK HERE

Already a subscriber? Login here

NOTES AND WARNINGS

Data compiled by kbmeter.com. Analysis date: 31 July 2026 - 8:15 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.