Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Trump boosts the market optimism
There is positive news concerning the US-China trade deal. We've prepared an overview of the current state of the situation.
As we were awaiting today's meeting of US President and top White House trade representatives, our anticipations were granted. At first, the risk sentiment has been boosted by the one single Trump's tweet.
His confidence in reaching a big deal soon resulted in the inflows of capital into risky assets.
After that, the breaking report by WSJ announced that the US trade negotiators are considering the possibility of a cut of tariffs on Chinese goods by about 50%. It also mentions the cancellation of planned December's tariffs.
How did it affect the market?
USD/JPY showed a great performance, rising by more than 50 pips. The pair has broken the 109 level and is looking forward to the 109.22 level.
The Australian dollar has been also moving up to the highest levels since the beginning of November, closer to the 200-day MA at 0.6910.
USD/CNH has retested the November's lows and gold inched lower.
Of course, the announcement was positive for the stock market. Nasdaq reached a fresh all-time-high at 8,496, and S&P has risen to 3,177.
What to expect next?
We recommend keeping an eye on the news, as any counter-report may reverse the situation in just a couple of moments.
The Federal Open Market Committee, a committee within the Federal Reserve, will reveal a detailed record of the central bank’s last meeting on July 6 at 21:00 MT.
The Reserve Bank of Australia will announce its cash rate and make a statement about future rate policy on Tuesday, July 5, at 07:30 MT.
The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3.