The market takes breath after the long rally. What opportunities do traders have today?
Japan increases FY 2017 forecasts for capital expenditure, consumption, housing
On Friday, the Japanese government increased its surge forecasts for private consumption, housing investment and capital expenditure for the current fiscal year because domestic demand gains strength.
The Japanese authorities left their overall forecast for GDP surge intact in fiscal 2017 that started in April, because of a sudden dip in inventories as well as moderately slower ascend in fiscal spending.
The government also hopes consumer prices to soar 1.1% this fiscal year and 1.3% next fiscal year, pointing to a relatively slow build up in inflationary pressure.
The forecasts that Prime Minister Shinzo Abe's cabinet will utilize for the purpose of compiling next fiscal year's budget, demonstrate that the Japanese economy will probably keep expanding unless there’s an unexpected and huge external shock.
Consumer spending is supposed to ascend 0.9% in fiscal 2017, surpassing the previous forecast for 0.8% surge published in January.
Housing investment will probably add 0.8% this fiscal year, potentially outperforming the previous prediction of 0.1% surge because the BOJ’s quantitative easing provokes a revival in property development.
As for capital expenditure, it’s expected to add 3.6% this fiscal year, outperforming the previous estimate for a 3.4% soar.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.