This week traders will focus on the latest data on China’s GDP and a number of significant indicators of the U.S. economy. Also, a new President of the European Commission is to be elected. Russia and the U.S. will try to renew their relations, and France will define its position on the nuclear deal with Iran. Z Cash is to execute its hard fork.
Chinese GDP. France is to take its decision on Iran.
At 02:00 GMT, China is to release its Q2 GDP. The Chinese economy grew by 6.4% YoY. However, experts expect a downward revision to 6.2%.
The problem in trade relations between China and the United States is the key factor for the skeptical position of analysts.
French President Emmanuelle Macron will have explored conditions of resuming dialogue with Iran on the nuclear deal by July 15.
Earlier, Washington had unilaterally withdrawn from the deal, accusing Tehran of violating the agreements. Since then, the Islamic Republic of Iran has increased its level of uranium enrichment.
US Retail sales. Vote on the EU President
At 12:30 GMT, the US releases its Core retail sales index in June. The index has remained above zero for 3 months. Analysts expect a slight increase to 0.3%, which is quite a realistic scenario for the current situation.
The European Parliament is to vote on whether to confirm Ursula von der Leyen as European Commission President. Experts believe that the decision of the parliamentarians is likely to be positive.
The former Germany’s defence minister promised to defend European values and the rule of law. Also, von der Leyen believes that a third extension of Brexit is quite likely to take place.
US oil inventories. US-Russia talks
At 14:30 GMT, US Energy Information Administration (EIA) releases data on crude oil reserves. The indicator has been declining for four consecutive weeks, which propelled the price of black gold.
Note that an increase in US oil reserves can be seen as a signal of the end of the bullish trend in the market.
Diplomats from the US and Russia will discuss the relations between the countries on a wide range of issues in Geneva on July 17-18. The meeting was scheduled after negotiations between the presidents of the two countries at the G20 summit.
The Philadelphia’s Fed business outlook. Zcash hard fork
The Philadelphia Fed report comes out at 12:30 GMT. Experts predict a value of 5.00.
The market will react sharply to any negative, as soon as the rapid growth of the stock market last week was not based on positive economic data.
ZCash is to execute its hard fork on July 18. It will resulted in the YCash coin, which all ZCash holders will receive at a 1 to 1 ratio.
The upcoming hard fork may be considered to be one of the possible reasons for the relative stability of ZCash since June. After the split of the crypto assets traders may face an activation of sell-offs.
Retail sales in Canada
Canada releases its Core retails sales index at 12:30 GMT. Traders expect the reading to come out at the previous forecast of 0.3%, which was not reached last month.