U.S. equities ended a week of cautious optimism with the Dow Jones, S&P 500 and the Nasdaq Composite, a heavy technology index, rising. Most of the gains occurred in the latter, as the first two have not yet surpassed the highs set in June, as they spend most of their time consolidating. Risk assets such as the U.S. dollar and, to some extent, the Japanese yen underperformed. The growth-related NZD advanced.

Are retail traders gaining momentum or fighting it?

 

The price of gold continued to climb to new highs in 2020 thanks to yields on long-term Treasury bills has decreased. This could be a harbinger of a loss of confidence in future growth prospects. Coronavirus cases in the United States continued to reach new highs last week as some states began to record Covid-19-related deaths.

Equity valuations of the world’s largest economy will begin to be tested as the second quarter earnings season kicks off and major financial companies release their results next week. More information will also be provided on how states and counties are coping with market closures if coronavirus cases and deaths continue to rise.

The euro and the DAX 30 will closely follow the ECB’s decision on interest rates and a meeting between European leaders to find common ground on a €750 billion rescue package to support economic growth under Covid-19. The British pound and Australian dollar will follow new GDP data updates from the U.K. and China respectively. Will U.S. retail sales continue to inspire confidence in growth?

 

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Fundamental Forecast :

Euro Forecast: EUR/USD to Find Direction from ECB and EU Summit

Two major events will dominate Euro trading in the coming week: an ECB meeting on Euro-Zone monetary policy, followed by an EU summit to reach agreement on a stimulus fund.

Outlook for the Japanese yen is optimistic due to rising coronavirus, the U.S. income season

The Japanese yen could rise if an increasing number of coronavirus cases worldwide highlights assets at risk. Yen gains could be boosted if corporate profits fail to impress investors

Dow Jones, S&P 500, DAX 30, FTSE 100 Outlook: Stocks to be released next week

The Dow Jones and the S&P 500 nervous revenue season ascoronavirus deaths could reimpose blockages. The DAX 30 is seeing an The EU rescue package while the FTSE 100 awaits GDP data.

Gold Price Forecast: Falling Fed Balance Sheets May Cap Gold Price Rise

Gold price increases appear to be dependent on the expansion of monetary stimulus and could decline as the contraction in the Federal Reserve’s balance sheet supports the U.S. dollar.

Weekly GBP/USD Forecast: Pound Sterling Encourages Recovery, Rally May Get Bogged Down

A plethora of UK data, however, external factors remain the main driver as the GBP/USD approaches 200DMA

Technical Forecast :

US Dollar Technical Outlook: ‘Death Cross’ takes shape in July

US Dollar Index (DXY) could face boundary conditions in the coming days due to the failure of the June low test attempt (95.75).

Australian Dollar Price Outlook: Australian dollar collapse ends at 2020 high

The AUD is slightly higher this week, with Australia just below its yearly high. Here are the levels that are counting on the AUD/USD technical chart.

EUR/USD Price Forecast: Upward momentum still in place

This week the EUR/USD reached its highest level in several weeks. Will the bulls continue to lead the course next week?

Gold Price Outlook: AUX/USD Decline at Play – Charts to Watch

Gold price action continues to steal the spotlight from the market as the precious metal reaches new multi-year highs. Can bullion continue to climb? Or is the Australian/U.S. dollar poised for a modest decline after exceeding $1,800 an ounce last week?

Oil Price Forecast: WTI back above 40, but can it hold?

The week was surprisingly quiet in the Oil sector, with a doji on this week’s price action network. But a longer-term formation has formed that could open the door to this next trend

Technical forecasts for the Nasdaq 100, DAX 30 and FTSE 100 outpace profits

The Nasdaq 100 is trading at the top of a long-standing technical pattern, just as the arrival of the earnings season seems to be injecting volatility into the market. Does this mean that the Nasdaq will have problems at the top?

USD/MXN Next Week: Mixed Signals and Risk Sentiment

Coronavirus continues to spread rapidly in the United States and Latin America, reducing the sense of risk despite the ongoing economic recovery

WEEKLY PERFORMANCE OF THE US DOLLAR AGAINST CURRENCIES AND GOLD

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2020-07-12