EU tariffs, Trump new and important market releases

Frank Walbaum FX Strategies.Asia

Important News for the week

Wed, 28th, 03:30 CET AU Consumer price index.
Wed, 28th, 04:00 CET NZ RBNZ Interest Rate Decision.
Wed, 28th, 20:00 CET US FOMC Meeting Minutes.
Thu, 29th, 14:30 CET US prelim. Gross Domestic Product.
Fri, 30th, DE prelim. Gross Domestic Product.
Fri, 30th, 14:30 CET US PCE Price Index.

RBNZ rate decision

This week, traders will focus on the Reserve Bank of New Zealand, which will determine their interest rate decision. The market is expecting a rate cut of 25 basis points. Although the cut is widely expected, the Kiwi remains quite positive for now. Positive data from China, a generally weaker ton of the Fed and positive risk appetite in markets might cause a strong impact. If the RBNZ will be more dovish than expected, this could put pressure on the NZD in the short term. Any lower levels in the NZDUSD currency pair might then be used well as entries to the upside.

Market talk

Stock markets started another run higher after Trump has calmed markets over the weekend. He stated that tariffs over Europe will not be imposed for now and delayed at least until the 9th of July. In particular the German DAX was hence able to push higher again, after the recent slides from Friday last week. This might be a reason also why Gold prices continue to weaken for now. Positive risk sentiment generally causes Gold prices to weaken. Also, crypto markets tend to move to the upside again. After the slight correction in Bitcoin also this market is pushing higher. The general weakness of the Dollar might help markets in general.

Tendencies in the markets

Equities positive, USD weaker, Bitcoin positive, Altcoins positive, oil sideways, Silver positive, Gold positive, JPY weak.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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