19 July, AtoZForex – Failed Turkey coup news somewhat have moved the Brexit effect to a temporary backseat over the weekend. During Sunday market opening various financial instruments reacted differently. While Japanese yen gapped lower during the market opening, the safe haven currency remained lower for the most part of the day. On the list of 10 daily Forex trading tips, we take a look at upcoming economic data and other necessary market moving events for the day.
#1 Turkey central bank takes action
In a bid to calm investors, the central bank of Turkey said it will implement many different precautionary policies to protect the financial stability in a region. One of these policies is that the Central Bank of Turkey (Turkiye Merkez Bankasi) will provide banks with needed liquidity without limits.
Opportunity: Buy USDTRY
#2 Theresa May determined on Brexit
Newly appointed British PM Theresa May was a strong supporter for the UK to remain in the European union. However, now that the people have voted for an exit she determined to steer the country out of the union. She is scheduled to use her first meeting of senior ministers to emphasize that must make the UK’s exit from the EU a success.
Opportunity: Watch GBP market reaction
#3 US markets again close at record highs
The Dow Jones Industrial Average and benchmark S&P 500 again closed at new highs on Monday. However, investors are worried about the overall price action sentiment. Is this a new stock bubble?
Opportunity: Sharp reversals expected from S&P and Nasdaq
#4 Turkey coup “could have succeeded”
Contrary to popular belief, a senior adviser to Turkey’s prime minister said the coup “was incredibly well organized actually” and “could have succeeded.” However, there are also a number of commentaries in the market claiming that the coup was staged. If the coup is proved to have ties to Erdogan management, it is likely to put TRY under pressure.
#5 Inflation as RBA’s major mandate
According to the latest monetary policy meeting minutes from the Reserve Bank of Australia, the central bank is awaiting further information on growth and inflation before deciding whether to adjust monetary policy. The Australian dollar fell after the release of the minutes
Opportunity: Sell AUDUSD on rallies
#6 IMF to downgrade UK growth forecast
According to the Telegraph, IMF chief Christine Lagarde is set to announce a growth forecast downgrade for the UK, thanks to Brexit. She warned that the Fund was also likely to cut its projections for world growth for the third time this year as global risk mount.
#7 Falling Eurozone/German Economic Sentiment
According to forecast, the Eurozone and German economic sentiment are expected to have fallen in the last month in the wake of the Brexit turmoil. However, ZEW trading generally tends to surprise traders. We are expecting a downward move before the market continues on bullish development.
Opportunity: EURO likely to recover after the data announcement
#8 Wells Fargo new London headquarters?
According to the Financial Times, Wells Fargo has agreed to buy an 11-storey building known as 33 Central in one of the largest London property deals. This is to serve as a new European headquarters in London for the bank in a deal estimated at a £300 million deal. How will the bank justify its decision and how would they proceed with their intention in case of actual Brexit?
#9 All eyes on UK inflation report
The Consumer Price Index which is a preferred gauge of inflation measurement is due for release at 8:30 A.M GMT today. The year on year consumer price index data is forecast to come at 0.4%, up from 0.3% previously reported. Having crashed severely in the past weeks due to the Brexit vote, some upbeat data will likely provide respite for an upward move on the pound.
Opportunity: Buy pound on higher inflation data
#10 US Building Permits
The final point on the list of 10 daily Forex trading tips, the US building permits and housing starts data are due from the US today. They are both forecast to come to a tad higher at 1.15m and 1.17m respectively. More upbeat data will definitely lead to a higher expectation of rate hikes to come soon.
Opportunity: Stronger dollar on positive data
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