Category: july

Market Analysis 23-27 July

Market Analysis 23-27 July 

USD Direction this week: Range bound

Volatility has been fairly low over past few weeks however it didn’t stop USD to climb higher as projected and should stay in the uptrend for at least Monday, Tuesday. Weak Eurozone PMI’s should be supportive for the Index. Important decision for USD is US QII GDP report this week which is likely to fail expectations due to further quantitative easing by the FED causing USD to ease of its uptrend.

Potential currency movers this week:

Tuesday Eurozone PMI  
Wednesday IFO;  
Friday US GDP;

AUD/USD Direction this week: Bearish

It is expected consolidation of this currency pair with the downside potential caused by week Australian CPI due to high relationship between Australian and New Zealand inflation.

Potential currency movers this week:

Tuesday China PMI;  
Wednesday Australian CPI;  
Friday US GDP;

AUD/JPY Direction this week: Bearish

AUD/JPY should slide lower this week due to worsening global economic outlook, soft Chinese economic data and heavy influence by offshore changes. 

Eurozone fears return: Shares fell and the euro stayed vulnerable after hitting fresh lows early on Monday in Asia, as concerns grew about Spain's ability to  avoid a sovereign bailout.  More bad news emerged when another region Murcia said on Sunday it would seek government financial assistance, while  media reported half a dozen governments were ready to follow in the footsteps  of Valencia. U.S. and European stocks tumbled on Friday after indebted region Valencia sought financial aid from Madrid. Spain's main stock index plunged  5.8 percent for its biggest one-day drop in two years, while Spain's 10-year government bond yield scaled a euro-era high at 7.32 percent Read full report here: Financials_Weekly_-_230712
 
Marius Mass
Green trades...
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Market Analysis 16-20 July

Market Analysis 16-20 July 

USD Direction this week: Bullish

It is expected to see strengthening of USD due to major currency swap rates relative to US swap rates reduction, accompanied with uncertain situation in Europe. The upside risks should be limited though, influenced by US interest rates and current account deficit of 3.1 % of GDP.

Potential currency movers this week:

Monday US retail sales, Eurozone CPI;  
Tuesday CPI, US industrial production;  
Wednesday Fed’s Beige Book;  
Friday Spain’s bank bailout Eurozone conference  

AUD/USD Direction this week: Bearish

Aussie should show some weakness due to strengthening of USD. Week Chinese economic growth will affect AUD to the downside.

Potential currency movers this week:

Tuesday                    RBA minutes, US retail sales, US industrial production, Bernanke speaks;

Wednesday              Fed’s Beige Book

AUD/NZD Direction this week: Bullish

Inflation of New Zealand in progressing further and we expect potential rate cuts ahead of RBNZ decision which will be positive for the currency pair.

Potential currency movers this week:

Tuesday                     RBA minutes, New Zealand CPI

AUD/JPY Direction this week: Bearish

This pair should be influenced mainly by Chinese data this week and fluctuation in US index. 

Marius Mass
Green trades...
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