Bullet Report: Top 5 Things Happening In The Market Today - Monday, July 17

Top 5 Things to Know Before You Start Trading

This Monday the market is still reeling from last week’s data and events while we await central bank releases. 

1 – Friday’s US Data Disappoints

Last Friday, the U.S. Consumer Price Indes (CPI) and Retail Sales were worse than expected, diminishing speculation of Fed Rate Hike in the near term. The US dollar Index dropped to below the 95 key level which was its lowest level since last September. The USD weakened across the board, as gold prices soared to $1230. GBP/USD spiked above 1.31, the first time since last September. AUD/USD also reached a 1-year high level.

2 – Central Banks in Focus this Week

Central bank events will be the main focus of the week. Monetary Policy Meeting Minutes of the Reserve Bank of Australia (RBA) will be released tomorrow. The Bank of Japan (BOJ) will release the Rate Decision on Thursday, meanwhile, The European Central Bank (ECB) will announce rate decision and hold a press conference.

3 – Yellen’s Testimony Keeps USD on the Defensive

The USD remained on the defensive in the wake of Yellen’s testimony last Wednesday, but the pressure eased. Markets await today’s key U.S. data. EUR/USD dropped temporary below 1.14 but rebounded on rumors that ECB President Mario Draghi might herald a policy change at Jackson Hole. EUR/USD closed the session at 1.1398. USD/JPY finished at 113.28.

4 – US Rate Hike Expectations Dim

U.S. rate hike expectations have been pared to less than a 50-percent probability after the latest inflation print on Friday. With no top-tier data this week, markets have plenty of time to mull over the future direction of interest rates. The repeated disappointment on prices cast a question mark over the Federal Reserve’s confidence that inflation would soon rebound.

5 – JPY Trumps EUR

The Euro was weaker against the Yen ending at 129, a loss of 0.78% over the course of the week. It lost ground against Sterling last week, falling by 1%, the close saw one £ buying €1.1418.

Disclosure: None.

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