This is what you need to know to trade today monday july 18:
The markets are still risk positive at the beginning of the week and the dollar has a hard time finding demand. The DXY dollar index, which lost 0.6% on Friday, remains lower at the start of the European session, with US stock index futures rising nearly 1%. No relevant data will be released on the European economic calendar on Monday. Later in the day, the NAHB index of the US housing market could build further momentum.
On Friday, data released by the University of Michigan showed that the consumer confidence index rose to 51.5 in July’s preliminary estimate, from 49.9 previously. More importantly, the long-term inflation expectations component of the survey fell to 2.8% from 3.1% in the final June figure. After these data, the probability of a 100 basis point interest rate hike in July fell below 30% from almost 90% earlier in the week.
Atlanta Fed President Raphael Bostic commented on the rate outlook, saying that a move “too drastic” could undermine the positive aspects of the economy. Meanwhile, the Wall Street Journal reported over the weekend that Fed policymakers were preparing to raise the interest rate by 75 basis points at the next meeting.
The EUR/USD closed for the third week in a row in negative territory, but managed to erase a portion of its weekly losses during Friday’s rebound. At time of writing, the pair is approaching 1.0150.
Earlier in the day, data from New Zealand have revealed that the consumer price index rose to 7.3% year-on-year in the second quarter, from 6.9% seen in the first quarter. This figure exceeded market expectations, which placed it at 7.1%. The pair NZD/USD it gained traction after this data and started to rise towards 0.6200.
The GBP/USD manages to extend early Friday recovery gains and is now trading at its highest level in five days near 1.1950.
The Prayed suffered heavy losses and posted its lowest weekly close in nearly a year. Supported by widespread dollar weakness early on Monday, gold has gained recovery momentum and has risen to the $1,720 area.
The Bitcoin It takes advantage of risk flows early on Monday and trades near the upper end of its one-month range, near $22,000. The ethereum He has already gained over 8% on the day and is still climbing towards $1,500.
Source: Fx Street
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