Last Monday the EUR/USD currency pair opened with a steep negative gap. Later it increased to the previous week closure price. As a result, the quotes did not show considerable changes, while liquidity swings could be explained with political instability in Greece.
This Monday also started with a negative gap, followed by sluggish growth. The referendum demonstrated that Greek citizens were not ready to cut spending to pay off national debt. It can be understood since there are €30 000 of debt per every person, hence €100 000 per family. However, market participants hope that a new agreement may be achieved and see the chances of Grexit as 50%. Many investors consider the strengthening dollar as a safe-haven asset, that is why gold failed to show its own hedging qualities: on Monday gold prices did not change much. Other commodities (including copper, oil and grains) indicated a considerable drop.
And yet, let us return to the last week events. US population demonstrated confidence and optimism. We can make this assumption, if we pay attention to the Consumer Confidence index in June. Unemployment fell 5.3% - the lowest level since April, 2008. Manufacturing Orders contracted 1% in May, which may mean real sector slowdown. Regarding the weekly results, we observe advancing stocks and the strengthening dollar. There were no unexpected macroeconomic news in eurozone. Consumer Price index recorded 0.2% in July while unemployment in May stood about 11.1%. The data came in line with the forecasts.
This week investors will be focused on the Greek issue. Despite the referendum results, about a half of them have been expecting the negotiations to continue. Janet Yellen will speak in the US on Friday, which is considered as the most important event. Over the course of the week regional Fed officials will hold meetings; on Wednesday the June FRS session minutes will be released. It is worth mentioning that US Trade Balance for May will be published on Thursday and Retail Sales will be announced on Friday.
Recommended Content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'