Analytics

News, Trends, & Analytics 28.07.2021

Goodbye Deflation

Today the focus is on British retail, Eurozone borrowing, and Japanese inflation.

 

Calendar

12:30 UTC

The Canadian Core CPI (MoM) for June will be reported. Forecast: 0.4%. If the data is lower than forecast the CAD could receive a negative push.

Assets to trade: CAD/CHF, GBP/CAD, USD/CAD


14:30 UTC

US Crude Oil Inventories will be released. Forecast: -3.433M. If the amount is lower than expected it is a bullish signal for crude prices.

Assets to trade: Brent, Chevron, Exxon Mobil


18:00 UTC

The Federal Reserve will release its Interest Rate Decision will be announced. Forecast: 0.25%. If the decision is higher than expected the USD could receive a positive push.

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

 

News

The Bank of Japan’s 2% inflation target has pulled Japan’s economy out of deflation, Governor Haruhiko Kuroda said on Tuesday. Affects JPY


British retailers reported only a slight slowdown in July after sales growth hit its highest in almost three years in June, the first full month after non-essential shops reopened from a coronavirus shutdown, industry data showed on Tuesday. Affects GBP


Chinese companies listed on US stock exchanges must disclose the risks of the Chinese government interfering in their businesses as part of their regular reporting obligations, a top US Securities and Exchange Commission official said on Monday. Affects Alibaba


Eurozone households continued to borrow at a brisk pace from their banks last month, European Central Bank data showed on Tuesday, lured by low-interest rates and an economic rebound from the recent-pandemic induced slump. Affects EUR


Global economic growth prospects are holding strong for this year and next, despite a significant majority of economists warning new variants of the coronavirus pose the biggest risk to that outlook. Affects S&P 500

 

Technical Analysis

CHF/JPY

The Japanese economy has been dampened repeatedly by COVID and an Olympics without fans, but continues to push forward and claw back ground against many currencies. Ending the deflation period will stoke this currency going forward.

The pair is trading in a downward channel.

GBP/NZD

The pair is trading in an upward channel, but prices will soon test the upper boundary.

BRENT

Its recent uptrend has stalled at the resistance level and prices could drop or break above it.

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