27 July, AtoZForex – Having already seen high volatility in the markets ahead of the European open, the rest of the day promises to be eventful in terms of market movement. The Australian inflation data helped boost the currency in overnight trading, only to give back gains. This and more on the daily Forex News and trade opportunities.
#1 Impressive US consumer confidence
Contrary to expectations, the US CB Consumer Confidence actually came out good, at 97.3. Depicting better than expected consumer confidence levels in the country. The greenback remains supported by upbeat data. However, today’s Federal Reserve rate hike decision could potentially seal the fate on the currency in the medium term.
#2 Oil prices dip to three-months low
The remarkable oil price recovery experienced this year seems to have taken a halt after oil prices fell to three-month lows. Following a 20 percent rise in prices in quarter two of the year, the price rally is now under threat of a renewed crash after the commodity has been falling consistently for the last few weeks. Analysts see another looming glut as the reason for why oil prices fell to three-month low. With supply-demand mismatches leading to a negative sentiment of the black gold.
Opportunity: Sell oil on rallies
#3 Did the US sponsor Turkey coup?
Conspiracy theory or fact? There have been reports that the failed Turkey coup was sponsored by the US. The ex-commander of NATO forces in Afghanistan, a retired US Army General John F. Campbell was behind the failed military Turkey coup, as it is reported by Yeni Safak daily, citing sources close to the investigation. Cambell is also said to have ties with the CIA as his major sponsor.
#4 BoE rate cut in August?
Martin Weale, the British economist and an independent member of the Bank of England’s Monetary Policy Committee believes that the central bank will provide a stimulus in order to fight the post-Brexit turmoil at its meeting on the 4th of August.
Opportunity: More weakness ahead for the GBP. Watch closely.
#5 Hillary Clinton makes history
As the race to the white house heats up, Hillary Clinton has now made as being the first woman to be nominated as the presidential candidate of a major US political party. After her official nomination at the Democratic Party at its national convention in Philadelphia.
#6 Australia Inflation steadies in June
The consumer price index data which is essentially a gauge of inflation came stronger in June at 0.4%, compared to -0.2% reported in the previous month. Hence, a strong rally from the Australian dollar.
Opportunity: Sell AUDUSD on rallies as the broad trend remains bearish
#7 UK Prelim GDP q/q
The prelim GDP for the UK is forecast to come at 0.5%, a potential increase from previous 0.4% reported. The ECB has already stated that there are no real signs of the Brexit effect hitting the economy just yet.
Opportunity: A weaker than expected result can help resume the fall in the GBP, hence sell GBPUSD on a disappointing report.
#8 July Fed rate decision
With strong arguments both for and against rate hikes, the final decision of the Fed as regards rate decision remains uncertain. With the labor market showing sustained strength and recent data looking upbeat, many analysts expect rate hikes to come soon. If the Fed fails to proceed with a rate hike, the dollar is likely to halt its recent strengthening.
#9 More stimulus on Abenomics
According to reports from a Japanese newspaper, Kyodo, Japan’s Prime minster Shinzo Abe will announce renewed economic stimulus package set to be over than 28 trillion yen, adding that economic measures are to be compiled next week. The yen dipped sharply after the report.
#10 Apple stock price surges
Concluding the daily Forex News and trade opportunities with the stocks scene, Apple, known as the most valuable tech company in the US had a stock price surge yesterday after the firm reported earnings per share higher than expectations.
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