Analytics

News, Trends, & Analytics 27.07.2021

Inflation worries

Today the focus is on German morale, new crypto laws in S. Korea, and US inflation concerns.

 

Calendar

12:30 UTC

The US Core Durable Goods Orders (MoM) for June will be released. Forecast: 0.8%. If the data is lower than expected the USD could receive a negative push.

Assets to trade: EUR/USD, USD/CAD, USD/NOK


14:00 UTC

The US CB Consumer Confidence report for July will be reported. Forecast: 123.9. If the results are lower than expected the USD could receive negative pressure.

Assets to trade: USD/MXN, USD/CHF, USD/NZD

 

News

A US Federal Reserve divided over how to respond to fast-rising prices meets this week with the fresh complication of increased coronavirus infections and a global supply chain that, far from sorting out its problems, may be headed for more inflation-inducing trouble. Affects USD


German business morale fell unexpectedly in July on continuing supply chain worries and amid rising coronavirus infection. Affects DAX


The $22 trillion market for U.S. Treasury securities may get a reality check from the Federal Reserve this week following a plunge in interest rates that bucked expectations of higher yields this year as the economy rebounds from the COVID-19 pandemic. Affects USD


Bank of England interest-rate setter Gertjan Vlieghe said the central bank should not scale back its stimulus possibly until well into 2022 because a recent rise in inflation is likely to be temporary and COVID-19 remains a threat for the economy. Affects GBP


South Korea will look to tighten a crackdown on tax evasion by cryptocurrency investors and high-income earners as it seeks fresh revenue to cover rising welfare costs, its finance ministry said on Monday. Affects Bitcoin

 

Technical Analysis

EUR/USD

Both economies are struggling to recover from the ongoing pandemic. The dollar had continued to climb as people surged back to stores, but rising cases and returns to masks and other measures may be putting a damper on shopper morale.

The pair has tested its support level and reflected upward to possibly break out of its downtrend.

AUD/CHF

The pair has shown a continued downtrend with a forming Two Outside Down to confirm the trend.

GBP/CHF

The pair is testing its resistance level, but is likely to continue its downtrend.

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