Euro ended last week as the most Bullish one, as it got backed up by hope of an agreement over EU’s post-pandemic recovery fund. The strength was particularly apparent against Swiss Franc and Sterling. Yet, up till the time of writing, there seems to be no consensus reached at the EU summit yet. Dutch Prime Minister Mark Rutte even complained that Germany Chancellor Angela Merkel and France President Emmanuel Macron were “walking away grumpy” from the meeting. Rutte added that a compromise is still “possible” at over-time during Sunday, but “there remain big issues”. Euro’s near term fortunate could have a U-turn if the negotiations collapse.
Market Outlook for Today
APAC stocks traded unevenly after the region initially took its cue from Wall Street’s mixed close on Friday as the decline in Netflix shares kept other large tech stocks at bay ahead of another earnings-abundant week, with 92 S&P 500 companies alongside eight Dow 30 constituents bracing to report their numbers – including the likes of Tesla, Microsoft, Twitter, IBM and some major US airlines. ASX 200 (-0.5%) lost steam after the open as Australia remained subdued by the outbreak in its second largest state of Victoria– which prompted authorities to announce a mandatory mask-wearing rule over the weekend. Nikkei 225 (-0.1%) swung between gains and losses after seeing initial pressure as Japan’s June trade balance printed a significantly wider-than-expected deficit in JPY terms, but with losses somewhat cushioned on currency dynamics.
In the currency’s markets, the AUD did end as the second strongest as of market close but is still looking supported by iron ore prices, as well as general risk appetite. But it should be reminded that coronavirus cases in Victoria continued to surge indicating that risk is rising for New South Wales. A sharp risk reversal in China’s stock markets could spill over to Asia and drag down the AUD too. The GBP was the worst performing one last week, followed by NZD and JPY.
In moving forward with a plan of action, most traders are eying dominant currencies in both the Asian and Main/European & US sessions, and it’s summarised as follows:
EUR is Mild to Moderately Bullish with a steady pick up of momentum with EUR/USD leading the pack by a +0.17% (Chg %)
GBP is moderate to strongly Bearish with GBPCHF leading the pack by -0.26 decrease (Chg%)
Main Session (European & US Sessions):
JPY is moderate to strongly Bearish with GBPJPY leading the pack by -0.26 decrease (Chg%)
Overview for the Week Ahead
In the sessions ahead today and for the week, we are expecting a slow start to and major movements by data releases, as the economic docket looks rather subdued. However, volatility is expected to pick-up towards the end of the week especially with Markit PMI data due for Germany, UK as well as the euro zone as a whole on Friday the 24th. The start of the week, the market’s movements will be dominated mostly, by the earnings seasons, with a host of reports from US companies covering a variety of sectors. Key names include American Airlines, Intel and Microsoft.
Today’s High Impact Events
The times below are GMT+3
Monday 20th July
02.50 (Post) –Japan BOJ Monetary Policy Meeting Minutes
Potential instruments to Trade: JPY crosses especially USD/JPY and Major crosses.
US CDC reports 67,574 new COVID-19 cases (Prev. +74,710) and 877 new deaths (Prev. +918) as of yesterday. Texas coronavirus cases increased by 7,300 on Sunday (vs. +10,158 on Saturday) to a total of 352,030; deaths rose by 93 to total of 3,958; hospitalization down 66, down from record high; according to the State Health Department. Florida COVID-19 cases rose by 12,478 on Sunday to a total of 350,047 cases, marking the fifth straight day of +10,000 daily cases. Florida hospitalisation +131 in the past 24 hours. Arizona COVID-19 cases +1.7% vs. 7-day average 2.4%.
Join us on our next Market Analysis Webinar via Zoom.
If you have any questions or require any assistance, please contact one of our support team members via our Live Chat or email [email protected].
We are Errante. Trading made personal.
Errante is the trading name used by Notely Trading Ltd, an Investment Firm authorized and regulated by the Cyprus Securities and Exchange Commission (CySec) under license number [383/20]. Errante is governed by the Markets of Financial Instruments Directive (MiFID II) of the European Union.
Notely Trading Limited is an Investment Firm authorized and regulated by the Cyprus Securities and Exchange Commission (CySec) under license number 383/20, registration number HE394425 and with registered office at 30 Karpenisiou, 1077 Nicosia, Cyprus. The Company is governed by the Markets of Financial Instruments Directive (MiFID II) of the European Union.
The website (www.errante.eu) is operated by Notely Trading Ltd.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.15% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read our Risk Disclosure.
Errante brand is authorised and regulated in other jurisdictions:
Errante Securities (Seychelles) Ltd (https://errante.com/) is regulated by the Seychelles Financial Services Authority (FSA) under license number SD038.
Errante is a Trademark owned by an entity of the Errante Group. All other trademarks that appear on this website are the property of their respective owners.
Regional Restrictions: We do not provide our services to residents of certain jurisdictions such as the USA, Syria, Japan, North Korea, Iraq, Belgium, Canada, and United Arab Emirates (UAE)
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64.29% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read our Risk Disclosure.
Functional Cookies help a site work well, they enable additional features which can make the user experience better.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
Analytical and Promotional Cookies
Analytical cookies are used to determine usage of a site, they may track individual users, but only to the extent to allow a proper user journey through the site. They are not used for targeting adverts.
Promotional cookies keep track of information to tailor advertisements to you and to measure their success. This includes using previously collected information about your interests to select ads, processing data about what advertisements were shown, how often they were shown, when and where they were shown, and whether you took any action related to the advertisement, including for example clicking an ad or making a purchase.
Please enable Strictly Necessary Cookies first so that we can save your preferences!
Cookies are small pieces of information, normally consisting of just letters and numbers, which are automatically stored on your computer (or any other devise used to enter the Internet) when you visit a website and offer an insight your activity and preferences.