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Ready to trade the first full trading week this month? I’ve listed the potential market themes that might affect the dollar’s price action!
Let me know if I’ve missed anything:
Lower tier releases
- ISM’s services PMI (July 6, 2:00 pm GMT) could improve from 45.4 to 49.0 in June
- EIA’s crude oil inventories (July 8, 2:30 pm GMT) last reflected the biggest crude draw since 2019
- Weekly initial jobless claims (July 9, 12:30 pm GMT) expected to add another almost 1.4M
- PPI (July 10, 12:30 pm GMT) to improve from 0.4% to 0.3%
- Core PPI also seen improving from -0.1% to 0.2%
Overall dollar demand
- Rising coronavirus cases in the U.S. can continue to keep traders from rushing to higher-yielding bets, which would keep the dollar supported
- The first full week of Q3 2020 could also see traders buying higher-yielding currencies against the dollar
- Tensions between the U.S. and China or the U.S. and its other trading partners can influence safe haven demand
Technical snapshot
- Stochastic is flagging the dollar’s “oversold” conditions against NZD, AUD, and CHF on the daily time frame
- USD/JPY is almost at the “overbought” territory
- USD remains in neutral zone against GBP and EUR
- The dollar remains in bearish territory against AUD, NZD, EUR, and CHF
- Look out for a potential reversal for USD/JPY
- The dollar may soon see bearish opportunities against CAD and GBP on the daily time frame
- The dollar was most volatile against the comdolls and the European currencies in the last seven days
