Markets Week Ahead : EURO, POUND, GOLD, YEN, FED, ECB & Boj - 24th July
Market Outlook:
The focus will be on policy statement and FEDs remark at the post conference, followed by ECB on Thursday and latest policy update by BoJ on Friday.
Investors eye will be on results in the coming days for Microsoft, Alphabet, and Meta.
Asian stock Market starts on a new note with Japanese market outperforming.
FED Policy
Is seen raising borrowing costs by 25 basis points to 5.25%-5.50% at the conclusion of its July meeting on Wednesday.
If FED maintains its bearish move and boosting US dollar and creating a negative backdrop for gold and stocks.
Investors are reluctant and are sideline and remain sceptic about FED bearish move.
ECB & BOJ Policy
ECB is also to deliver a quarter point hike, but they are seen non-committal, given the negative of growth in the eurozone. If the scenario play out, euro could be at risk of a bearish reversal.
BOJ, is expected to maintain its policy settings unchanged, the YEN could rally. If the policy is bearish the Asian currency could take a hit against their higher yield.
EUR/USD
Investor are awaiting for FED and ECB data and during asian session the pair is around the 1.1125-1.1130 area .
A clear break of the 1.1090 support levels marked since late June, around 1.1010-1000 at the latest support line from May 31, close to 1.0920. Break above observing that the 1.1200 may also check to the latest high surrounding 1.1275.
GBPUSD
GBP/USD trading around recovers early lost ground to the 1.2860 area during the Asian session on Monday and remains indecisive after biggest weekly loss in 6 months.
The investors are waiting for UK Flash Manufacturing and Service PMI data.
The pair is currently between 1.2890 and 1.2790. Break of the support may target 1.2770 and challenge the bears. The crucial level to watch 1.2965-80, as a clear break will target around 1.3145 and 1.300 being the psychological level.
GOLD
Gold holds above the $1,960 level on Monday and initial support at $1,940; resistance is seen at $1,965.
As per the chart the break of $ 1940 could target $1,930 and $1,920 (High of July 3). $ 1900 psychological level.
Above $1,965, would drive gold towards $1,972 (High of July 21), followed by $1,983 (High of July 18). with $ 2000 upside level.
