What to expect next week 24.07-28.07.2017

The European Central Bank left the interest rates unchanged. Mario Draghi's comments after the news gave strong support for the currency. He did not say exactly when the policy tightening will start, but investors expect this to happen in September, with the stimulus program cut from 60 billion euros to 40 billion euros. Economic data in the area is improving, which also has a positive impact on the single currency.

The dollar fell to its lowest levels against the euro since January 2015. during this week. The decline began last week when Janet Yellen shared concerns about low inflation. In addition, yesterday it became clear that Robert Mueller, the special investigative Russian intervention in the presidential election last year, is investigating a large volume of financial transactions involving Donald Trump's business and its subordinates.

Stock were trading with a decline today. All major indices in the US are down, with the S & P500 down 0.1%, Dow Jones Industrial Average down 0.2% and Nasdaq 0.1%.

Negative moods were also observed in European markets, with the biggest losses coming from the automotive, construction and banking sectors.

The news that will move the markets next week

Monday:

03:30 - Japan - Manufacturing PMI

10:30 - Germany - German Manufacturing PMI

11:00 - Europe - Manufacturing PMI

16:45 - USA - Manufacturing PMI

16:45 - USA - Services PMI

17:00 - USA - Existing Home Sales

Tuesday:

02:50 - Japan - Monetary Policy Meeting Minutes

11:00 - Germany - German Ifo Business Climate Index

17:00 - USA -  CB Consumer Confidence

Wednesday:

01:45 - New Zealand - Import

01:45 - New Zealand - Export

01:45 - New Zealand - Trade Balance

04:30 - Australia - Consumer Price Index

11:30 - UK - GDP

17:30 - USA - Crude Oil Inventories

21:00 - Fed Interest Rate Decision

Thursday:

09:00 - Germany - GfK German Consumer Climate

15:30 - USA - Core Durable Goods Orders

Friday:

02:50 - Japan - Household spending

02:50 - Japan - Jobs/applications ratio

02:50 - Japan - Consumer Price Index

02:50 - Japan - Tokyo Consumer Price Index

04:30 - Australia - PPI

15:00 - Germany - Consumer Price Index

15:30 - Canada - GDP

18:00 - US - GDP

Next week, we expect a number of important economic data, as well earnings reports from large companies.

The direction of the indices will be determined by the company earnings statements.

Alphabet(Google) – 24.07.2017

AT&T Inc. – 25.07.2017

McDonald’s Corporation 25.07.2017

Facebook – 26.07.2017

Amazon – 27.07.2017

Investors are looking forward to data from Facebook, Amazon and Alphabet (Google), which are one of the shares of the FAANG group, which have a heavy weight on the S & P500 index. If the results are better than expected, we can see a rise in the index.

We will also look for economic data from the EU to see if they will support the single currency rally or we can see a reversal of the direction.

Investors will also look at the Japanese currency, which is one of the best performing this week, due to the USD decline. Next week we are expecting data from the country, with better than expected we can see the continuation of the JPY rise.

The moods about the dollar remain negative until we see a drop in tension in Washington. Next week, we expect the Fed's interest rate decision on Wednesday at 21:00 and no change is expected. We will follow the press conference afterwards for additional signals to the Central Bank's policy.

Junior Trader Stefan Panteleev

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