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- What to expect in the next week July 10-14, 2017
What to expect in the next week July 10-14, 2017
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Loading...BoJ left the monetary policy in the country loose, and that affected negatively the JPY, which fell short against most of its peers in the beginning of the week.
Bank of Canada hiked their rates for the first time since 2010, as CAD reached a 13-month high.
The USD was lower on the comments from JPY, as they caused a significant drip in U.S. Yields. JPY inched higher, which was due to the rebalancing in portfolios, as well as the signals for possible political turmoil in the US. This led to the correction in JPY, which at the moment, combined with the weaker dollar caused for increase. Nevertheless, JPY's trend remains short.
Equities reached record levels today, closing their best week in a couple of months. Robert Kaplan from Fed said, that he wants to see clear signs that the inflation is headed to the 2% goal from Fed, in order to start talks for additional rate hikes. Janet Yellen commented, that any future hike will be more gradual.
European equities made their best week since April.
What economic news to expect during next week:
Monday:
05:00 China - GDP
12:00 Europe - CPI
Tuesday:
01:45 New Zealand - CPI
11:30 UK - CPI
12:00 Germany - German ZEW Economic Sentiment
Wednesday:
15:30 USA - Building Permits
17:30 USA - Crude Oil Inventories
Thursday:
04:30 Australia - Employment Change
Tentative Japan - BoJ Monetary Policy Statement
11:30 UK - Retail Sales
14:45 Europe - ECB Interest Rate Decision
15:30 USA - Philadelphia Fed Manufacturing Index
15:30 Europe - ECB Press-conference
Friday:
15:30 Canada - Core CPI
15:30 Canada - Core Retail Sales
In the upcoming week, full with important economic news, the accent will fall on the central banks.
Investors will focus on ECB's Interest Decision Rate, as well as the pressconference later on Thursday. They will also seek additional indicators on the future of the monetary policy in the region, especially after Mario Draghi's hint that it is time for QE exits. This will cause market turbulence and a new rising impulse in EUR/USD, which at the moment trades in the range of 1.13.
Another factors, that the EUR can benefit on are the inflation reports. Better than expected data for the CPI can additionally support the common currency.
The GDP data in China could support the AUD and NZD, as better than anticipated data will be a sign for an expansion in the economy.
Traders will watch carefully CAD, which was strongly supported by the rate hikes in the country. During the next, we expect inflationary reports, in regards to the Core CPI and Retail Sales news in Friday.
The Cad found support against the greenback, in the face of the 38.2% Fibonacci Retracement from 2011.
Regarding the indices, the corporate season will be the main driver next week. The beginning of the fiscal reports was set from the better results for the quarter from JPMorgan Chase & Co. and Citigroup. However, both stocks trailed today on concerns for inflation , which is lagging for a forth month running.
Market participants will watch closely the BoJ statement. Indication for a tighter monetary policy will lead to a rising impulse in JPY, and they can seize it's declining trend.
Jr Trader Alexander Kumanov
Varchev Traders Read more:
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