Who’s ready to trade the dollar this week?
No Fed or top-tier release this week, which suggests that the dollar will take cues from market risk sentiment.
Here’s a short list of this week’s potential catalysts!
- Existing home sales (Jul 22, 2:00 pm GMT) expected to jump by 23.0% after 9.7% dip in May
- Weekly initial jobless claims (Jul 23, 12:30 pm GMT) expected to add another 1.30M claimants this week
- Markit manufacturing PMI (Jul 24, 1:45 pm GMT) to hit the expansionary zone (from 49.8 to 51.5) in July?
- Markit services PMI seen improving from 47.9 to 50.4 in July
- New home sales (Jul 24, 2:00 pm GMT) expected to add 700,000 sales in June
Overall dollar demand
- Coronavirus cases in the U.S., stimulus and vaccine updates and reopening prospects will continue to affect demand for the safe haven dollar
- Earnings reports of companies like Tesla, Twitter, Microsoft, and IBM can also influence the dollar’s intraday trends
- A 30-day snapshot of the dollar’s performance shows it’s in the red against most of its major counterparts
- USD is only in the green (and not by a lot!) against the yen
- Stochastic considers the dollar “oversold” against the euro on the daily time frame
- It’s also nearly oversold against the Aussie, Kiwi, and pound
- The dollar is on short AND long-term downtrends against AUD, NZD, EUR, CHF, and JPY
- Watch out for retracement or reversal opportunities on USD/CAD and GBP/USD