Market Analysis

Forexmart's Market Analysis section provides up-to-date information about the financial market. The overviews are intended to give you an insight into current trends, financial forecasts, global economic reports, and political news that influence the market.

Disclaimer: Company does not offer investment advice and the analysis performed does not guarantee results.

July 6, 2020 11:18 am

Fundamental forecast for the week of July 6-10

Monday, July 6


The week starts with the publication of statistics on business activity in the construction sector in Europe. Indices in many countries showed the expected growth, but did not have a visible impact on the dynamics of currencies. But retail sales in Europe supported the euro: sales in the region in May increased by 17.8% compared with April at -12.1%.


In the United States, the publication of totals on the index of business activity in the service sector and the composite index of business activity is expected. Indicators are likely to show growth, but the market already took this fact into account when publishing preliminary data, so the dollar is unlikely to change significantly.


Tuesday, July 7


Tuesday is not rich in macroeconomic publications. The Board of Australia Board meeting is likely to attract attention. Market participants do not expect interest rate changes, but they hope to receive signals that the regulator is ready to take additional incentive measures. If the Central Bank of Australia announces steps to expand incentive measures, then the Australian dollar may be under serious pressure on Tuesday.


In the evening, the United States will present its data on the number of job openings in the labor market (JOLTS). Experts predict a decrease from 5.046 million to 4.850 million.


Wednesday, July 8


Wednesday will be the calmest trading day as the economic calendar is practically empty. Attention can only be drawn on data on crude oil inventories in the United States from the US Department of Energy.


Thursday, July 9


On Thursday, the United States will submit data on applications for unemployment benefits. Their further reduction is expected, which is an extremely positive factor for the dollar. However, the rate of decline in the number of repeated applications slowed sharply, which indicates that the situation on the labor market, although it has stabilized, is not in a hurry to improve.

If the rate of decline in precisely repeated applications continues to slow down, then investors may regard this data more likely as negative.


Friday, July 10


On Friday, you should pay attention to the Canadian dollar, since Canada will publish data on the labor market. The unemployment rate may rise from 13.7% to 14.1%, which will put pressure on the currency.


In the US, data on producer prices will be published, the decline rate of which should slow down from -0.8% to -0.6%. If the forecasts are confirmed, the US currency will be able to complete the week on a major note.


Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance. Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.