Trade Wars to Outshine ECB Decision, Earnings, and US GDP

Published on: 07/23/18 10:10 AM

Category: Uncategorised

The efforts of a global economic and financial power pressing the world closer to the edge to achieve unclear rebalancing seem extraordinary. We should navigate the unprecedented period for international relations and its influence on investors and citizens. Trade wars can no longer be ignored due to its visible effects. Theft of properties threatened the American duties. President Donald Trump pushed the stakes higher and placed import revenue on Chinese imports after the stealing of the intellectual property weeks ago.

Trade Wars Effects

Trump efforts to support global trade war is risky to the international trends, US assets, and Dollar. The engagement would not only affect China economy and financial standards if the involvement was kept to the Chinese, but the crisis could spill over to the whole world. Trump criticized the Fed saying it led to the US becoming uncompetitive owing to the cost of debt and currency level.

ECB Decision

Complex themes like flippancy of risk trends and trade wars are the highest potential or threat for trend development soon. The docket is expecting scheduled and high-risk event risk due to the upcoming drive from chaotic fundamental winds. The ECB rate decision will determine the top billing for the coming week.

Earnings

Monetary policy has not shown its effectiveness as a market catalyst in the recent weeks. The groups are yet to decide when to change to a tentative hawkish policy from a dovish one. Currently, the watch is after an absolute commitment and not the last plan that set the course.

Gross Domestic Profit

The US 2Q GDP is essential in evaluating the performance of the leading economy in the world. They will analyze such details in a controversial backdrop. Australian CPI due and FANG earnings are events worth your consideration and they less trigger distinctive volatility. Aussie inflation figures will address the lost AUD appeal.

Consistency and anticipation for direction is a waste of time. Dynamic themes volatility and primary event risk are credible. If you are after better market development probabilities, you ought to consider certain currencies. The Canadian Dollar has been generating some heat in the previous weeks. It has recorded a strong CPI figure which attracted some technical response from NZDCAD and USDCAD. Brexit has consistently pushed the British Pound despite having little Loonie-specific mines shortly.

The Sterling is an ideal counterpart to use if you want a more refined drive. Kiwi is in the same vein, and its speculative bearing is more extreme to its counterparts. The uncertain futures in the NZDUSD positioning are summing up the record that can support another trend reversal in the spot rate.