The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Trade ideas for July 19-23
Information is not investment advice
We will remember the past week for the surge in the US inflation and the soothing comments of the Federal Reserve’s Chair Jerome Powell. Which news and trade opportunities await us in the upcoming days?
Trade opportunities for July 19-23
Forex
With the European Central Bank’s meeting on Thursday, the EUR will be the highlight of the week. The ECB will likely say more about its new strategy. The bank’s officials have already hinted that they plan to allow inflation to overshoot the 2% target. This would mean that the regulator won’t tighten policy prematurely. The EUR might weaken in EUR/USD, EUR/JPY, EUR/GBP, and EUR/NZD.
Stocks
Top US companies will continue hitting the market with earnings reports. This time we’ll hear from J&J, Coca-Cola, eBay, Microsoft, Intel, AT&T, and Twitter. The broad market gauge, S&P 500 (US500) remains near the record highs. The Fed’s assurances about the continuing monetary support represent the main bullish factor. The main risks for the uptrend are the spread of the coronavirus delta variant and the surging inflation. Analysts at Morgan Stanley warned that the odds of a 15% correction in the US stock market are rising as the valuation of technology stocks has become too high. Still, until the decisive technical signals arrive, it’s too early to talk about sell trades.
Oil & metals
Oil had the worst week since March. Uncertainty around the prospect for an OPEC+ deal to increase supply has clouded the short-term outlook. The United Arab Emirates is close to a deal that would allow it to boost output in the coming months. On the upside, the demand is expected to rise, and Citigroup sees Brent (XBR/USD) above $80 a barrel even if oil exporters agree to increase production.
Higher inflation in the US and cool comments of the Fed supported gold. If the precious metal manages to overcome resistance at $1838, the targets will be at $1850/$1853.
Risk warning
The following information is not investment advice. Remember that trading is risky. Manage your funds carefully and remember that you can use Take Profit and Stop Loss orders to maximize your gains and limit your losses.
Similar
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
How to Stay Calm and Trade on Uncertainties
Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!
Popular
Fed Keeps Pushing USD to 2000s Highs
The US dollar index has all chances of reaching the 2000s high of 120.00.
Gold isn't saving investors from inflation
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?
Bitcoin Skyrockets Ahead of ETH Merge and US CPI Release
First, "ETH merge" Google requests are on the rise. At the same time, "buy ETH" requests are at their two-year lows, which is quite a negative factor ahead of the vast update. The community either doesn’t believe in the success, or they are following the "buy the rumors – sell the news" rule and waiting for the massive dump after the merge.
Choose your payment system
