News, Trends, & Analytics 22.07.2020

Today in the spotlight — the leaders of the EU have concluded a historic deal, Germany is demanding Turkey stop mining resources in the waters of Cyprus, as well as the economic success of China.

 

Calendar

12:30 UTC

Canada’s core CPI for June will be released. Any positive value will be positively assessed by the market and may cause the CAD to rise. Despite the fact that the last two reports recorded a drop in the indicator, we are inclined towards a more positive scenario for CAD.

Assets for trading: USD/CAD, EUR/CAD or other CAD pairs.


14:00 UTC

There will be data on sales in the U.S. secondary housing market for June. An increase of 4.78 million is forecasted. The forecast may well come true, which will support the USD exchange rate.

Assets for trading: EUR/USD, USD/CHF, ETF U.S. Real Estate.


14:30 UTC

The report on changes in U.S. crude oil reserves will be published. Forecast: 1.95 million contraction. If real data match expectations or show a deeper decline, Brent quotes may rise.

Assets for trading: Brent, Chevron, Exxon Mobil.

 

News

European Union leaders have struck a historic deal to stimulate the economy, as well as a seven-year budget. Affects EUR


President of the PRC Xi Jinping has pledged to stimulate the economy and cut taxes. Affects Alibaba


The German foreign minister, Heiko Maas, warned Turkey to stop mining natural resources in the waters of the eastern Mediterranean. Affects TRY


The United States has imposed sanctions against 11 Chinese companies. Affects the S&P 500


Pharmaceutical company Novartis lowers its 2020 sales forecasts. Affects Novartis

 

Technical Analysis

Hang seng

President of the PRC Xi Jinping, speaking on state television, noted the country’s leadership in terms of economic growth. The Chinese leader stressed China’s desire to compensate for the losses from COVID-19, so the authorities will adhere to a soft monetary and progressive fiscal policy.

Against this background, the Hang Seng rate resumed its growth, after a reversal from the lower boundary of the ascending channel. The bullish trend may continue.

Gold

Despite the positive news from the EU, as well as a moderate rise in the stock market, the price of gold has renewed a maximum of 8 years. However, the chart faced upward resistance. For this reason, a downtrend is possible.

EUR/CAD

A “double bottom” reversal pattern has formed on the chart of the currency pair. It is not excluded that we will soon see a prolonged downturn of the asset.

EUR/CAD on this day in history

  • Since 2000, July 22nd has been a trading day 13 times.
  • On 61% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 0.99%.
  • The downward trend was limited to 0.86%.

 

Changes in the trading schedule

The Nikkei 225 will not be available on July 23rd and 24th due to Japanese public holidays. We recommend paying attention to other stock indices — for example, DAX, FTSE 100, S&P 500.


Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.

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