Today the focus is on the Japanese Interest Rate, European Year-on-Year CPI for June, the US Monthly Retail Sales, and US Monthly Core Retail Sales for June.
Japanese Monetary Policy and Interest Rate Announcement. Hawkish tones and optimistic notes in the Japanese economic outlook may provide an upward boost for JPY during the entire session today.
Assets to trade: USD/JPY, NZD/JPY, CAD/JPY
European Year-on-Year CPI for June. Forecast: 1.9%. If the actual CPI is higher than expected, it may create downward pressure on EUR and keep dragging it downwards throughout the day.
Assets to trade: EUR/USD, EUR/AUD, EUR/CAD
US Monthly Core Retails Sales. Forecast: 0.4%. If the released data is higher than the forecast, traders’ optimism may lift USD.
Assets to trade: EUR/USD, USD/JPY, GBP/USD
The US Treasury Secretary Janet Yellen is reported to have no plan to revive the US-China economic dialogue. That agrees with the stance of the current administration under US President Joe Biden on China. Affects USD
Netflix announced it’s expanding into video games. To implement the new strategy, it hired Mike Verdu, who previously worked with Electronic Arts and Facebook. Affects Netflix
The Bank of England reported an unexpectedly sharp inflation rise that may force the UK central bank to discontinue the current quantitative easing program soon. Affects GBP
The latest announcement by the Bank of England reported that the country’s inflation is rising faster than expected. One of the possible reasons for this is that domestic economic activity in the UK is recovering faster, too. As such, that may be a positive sign for observers.
Therefore, FTSE 100 may bounce off the support channel under 7,000 and reverse upwards. In this scenario, 7,050 would be a likely target for bulls during today’s session.
Recent comment from the US Federal Reserve Chair Jerome Powell let gold extend gains and aim at higher levels. We believe it may reach 1,850 during today’s session.
AUD/JPY has been following a downtrend since the middle of June. We believe it is likely to complete its current downswing and drop to the support of 81.20.