Expectations and sentiment for the next week 22.07-26.07.2019

We are already in the heat of the Q2 reporting season. Market participants are fully focused on them, such as Fed, Trump and Iran remain in the background. In spite of the turbulent week, market participants remain bullish toward the stock, the US dollar continues to retreat, albeit stubbornly bulls to keep it from further declines, and oil seems to ignore the renewed tensions in the Middle East. The final winner, however, was gold, recording a 3% rise and a new high at a price of $ 1452.78 after a turbulent weekly session.

Next week, we expect the mood to remain optimistic, because at this stage the season is not that bad, and the Fed does not give up on its plans to cut interest rates. From a foundation point of view, it remains seemingly calm, but we are expecting news about Brexit for the election of the Prime Minister and whether Trump will soften the tone against the Chinese in order not to fail the negotiations. We expect the market mood to remain a bear for the dollar and next week, and bulls and indices will not give up. Gold is expected to adjust to more comfortable levels for long positions, but it definitely returns its shine as a financial asset. The $ 1423.57 zone is a potential support area where we could look for purchases to follow the upward trend.

The week starts weak. Monday has nothing to offer us as economic data on our calendar, so we are rather expecting a weaker tone of trade, driven entirely by reports, rumors or other news.

Tuesday's pace is hurrying as during the US session we expect sales of existing homes and weekly API oil reserves.

Wednesday's Asian session begins with New Zealand's trade balance, and after the start of the European session, German production data will hold European nail traders. PMI data for the Eurozone follows, as well as for the US, including oil stocks and US home sales.

Thursday will be the busiest, with the European session starting again with Germany's data on Ifo's business climate and at noon the ECB's interest rate and official statement. Before the US session, we expect sales data on durable goods and initial aid applications. The ECB press conference followed before the US opening.

On the last day of the week, Friday, the Asian session begins with Japan's CPI data, and later in the day we expect US GDP figures, Michigan consumer sentiments, and Baker Hughes' oil platforms.

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response