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.