Greenback Rally
The Greenback keeps gaining in the wake of rising U.S. stocks and a strengthening US Dollar Index. Last Friday’s US Census Bureau reports showed a better than expected rise in retail sales rose for June and manufacturing increased by the most since January. This expands the likelihood of the Federal Reserve hiking interest rates by December.
Weaking Yen
The Yen slipped against the Greenback as we watched the USD/JPY finished last week up 423 pips – the largest weekly gain we have seen since October 2014. As the new wee begins, the USD/JPY appears poised to add to those gains as today the market continued this move and is pushing the envelope of the June’s high of 106.28
Eyes Still On The GBP
After suffering horrendous losses since June 24th, the Cable has gained over 0.4 percent to $1.3264, extending the gains we saw last week. Still, no one is holding their breath on these gains with the best forecasters predicting a Sterling slide to $1.27 before this year is up. It seems unlikely that with so many questions still unresolved about Britain’s relationship with the E.U. to expect any major bank policy changes and interventions. With Britain’s brand new government just barely getting set up, there is a lot of uncertainty with the Cable but no one expects it to strengthen under the circumstances. There is also the possibility that the BoE will introduce stimulus measure in less than 3 weeks, which may also result in further Cable weakening.
Trading Opportunities
We expect many opportunities for Forex signals to be revealed as the week progresses. At ForexSignal.com we are constantly monitoring the market for trading opportunities and we will alert you when it is time to trade. While there are not a lot of market moving releases on the horizon this week, we may see extra volatility during these significant high-impact releases:
Tuesday July 19
United Kingdom – Consumer Price Index (YoY) and Core Consumer Price Index (YoY)
United States – Building Permits (MoM)
Wednesday July 20
No high impact alerts on the calendar
Thursday July 21st
European Central Bank (ECB) Interest Rate Decision, deposit rate decision, and ECB Monetary policy statement and press conference
United States – Initial Jobless Claims, Existing Home Sales (MoM)
Friday, Jul 22, 2016
France – Markit Manufacturing PMI
Germany – Markit Manufacturing PMI
Canada – Bank of Canada Consumer Price Index Core (YoY)
Canada – Consumer Price Index (YoY)
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