It’s the last full trading week for the month!
Think you’re ready to crush dollar trading?
Here are market themes you need to know about.
Lower-tier economic releases
- Existing home sales (June 22, 2:00 pm GMT) to dip from 4.33M to 4.1M in May?
- Markit manufacturing PMI (June 23, 1:45 pm GMT) expected to jump from 39.8 to 47.8
- Markit services PMI could improve from 37.5 to 44.8 in June
- New home sales (June 23, 2:00 pm GMT) seen at 630K (from 623K)
- Durable goods orders (June 25, 12:30 pm GMT) to rocket from -17.7% to 12.6%
- Final GDP (June 26, 12:30 pm GMT) likely to maintain -5.0% reading for Q1 2020
- Natural gas storage (June 25, 2:30 pm GMT) moved oil prices last week
- Core PCE price index (June 26, 12:30 pm GMT) seen at 0.1% from -0.4% print in April
- Personal spending (June 26, 12:30 pm GMT) could jump from -13.6% to 5.1% in May
General dollar demand
- As a safe haven currency, the dollar gains popularity when traders don’t feel like taking risks
- Updates on coronavirus cases and the chances of lockdown measures being imposed can affect dollar demand
- Vaccine and stimulus news can also influence risk-taking in the markets
- No FOMC member speech scheduled this week, which could turn investors’ focus on U.S. fundamentals
- Stochastic considers the dollar “overbought” against the pound
- The dollar is “oversold” against the yen
- USD is on the upper half of the oscillator against AUD, EUR, and CAD on the daily time frame
- The dollar is seeing short AND long-term bearish trends against the Aussie, Kiwi, franc, and yen
- It’s bullish against the pound, however
- Watch out for retracement or reversal opportunities GBP/USD, EUR/USD, and USD/CAD
- USD was most volatile against AUD, NZD, GBP, EUR, and CAD, in the last seven AND thirty days