The G20 summit took place in Bali, Indonesia, on November 2022…
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
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.
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.
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.
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.