Trader’s calendar for July 1 – 3:  What currency to buy after G20? (USD, JPY, EUR, AUD)

Trader’s calendar for July 1 – 3: What currency to buy after G20? (USD, JPY, EUR, AUD)


Today the G20 summit starts in Osaka, and it may feature a landmark event. Donald Trump and Xi Jinping are expected to meet on the summit sideways. If they manage to find a compromise and strike a trade deal, then the appetite for risk will increase. Overwise, the demand for safe-haven assets will rise. Besides, macroeconomic statistics may also influence the market dynamics. For more details, watch our video calendar for traders on InstaForex TV channel. If the negotiations bring no results, then concerns over the global economic outlook will intensify. Besides,, the joint report from Caixin and Markit Economics may add pressure. Early on Monday, the manufacturing data will see the light in China. The Purchasing Managers’ index is expected to decline towards 50.0 mark that separates the expansion and contraction zones. Some analysts factored in the official data from China’s National Statistics Office that reflects the performance of big and medium enterprises. So, they expert that the Caixin PMI showing tendencies in small and medium businesses will also post a negative reading, sliding below 50 mark. Meanwhile, the data on the anufacturing activity
in Germany, the United Kingdom, and other EU countries will be equally interesting to
traders. The entrepreneurial initiative weakened in the region which deteriorated economic expectations. The news from Australia may also discourage investors. The economy of this country is vulnerable to the trade conflict between the United States and China, as Australia supplies raw materials for the Chinese industry. At its latest meeting, the Reserve Bank of Australia decided to cut the interest rate. On Tuesday, another meeting is due to be held where the bank is likely to highlight the weak economic conditions and persisting risks of a fall in foreign demand for the raw materials. This statement may trigger a short-term selloff in the Australian dollar. On Wednesday the US dollar may suffer a selloff as well ahead of the ISM non-manufacturing business activity report. Analysts predict that the index declined to 56.0 points. Last month, the negative expectations were not met, but the US economy is unlikely to sustain the positive momentum this time. So, a fall in the index will lead to a fall in the American currency. On top of the above-mentioned event, the following statistics will attract traders’ attention. On Monday an array of manufacturing PMI reports will be delivered in most developed countries. On the same day, Germany and the European Union will present the unemployment statistics. On Tuesday Canada will report on the business activity in the manufacturing sector. On Wednesday investors will absorb the statistics on activity in the services sector. Besides, Canada and the United States will deliver the trade balance data.

Leave a Reply

Your email address will not be published. Required fields are marked *