Data will have an impact on trading this week. The U.S. will release Retail Sales figures on Tuesday and China will be publishing important statistics including its GDP and Industrial Production numbers on early Wednesday. Germany and the U.K. will also put forward economic marks that need to be watched, including the ZEW Economic Sentiment rating on Tuesday from the new World Cup winners – while the U.K. will release inflation and employment reports.
Portugal will stay in the spotlight regarding its banking sector. While investors have largely decided that the situation in Portugal can be contained the reminder that it serves traders is significant. While Europe continues to grapple with lacklustre growth, continued woes among its nations have not disappeared and must be monitored carefully in the financial sector.
The EUR opens this week on the soft side of its short-term range. The Single Currency has maintained good values even in the wake of the ECB admitting that the economic environment on the continent remains challenging. But the simple fact is this, the USD still is being weighed down by the Federal Reserve which has essentially acknowledged that the American economy is not progressing as well as had been hoped for and this has been the lynchpin in forex.
Other major currencies continue to show life against the Greenback too. The GBP and AUD have provided tempting range trades for those with the stomach to participate in FX. The JPY also has stayed on the stronger side of its value versus the USD and the Yen should be watched closely this week with important data coming from throughout Asia, including Japan, China, and Korea. Risk appetite is always a factor in the Asian markets.
Gold which has risen in value this past month has maintained its strength, but has not kept up its pace. Meaning that the precious metal is bouncing along crucial resistance and traders need to be keenly aware that Gold has been in nearly a two year bear market and inflation data has not exactly stirred a speculative pot. Which could provide impetus for some gold selling.
Besides the important data coming forth this week, traders would be wise to pay attention to global political entanglements. While most of the ‘players’ are known, sudden surprises could have an impact on market sentiment particularly in commodities such as Crude Oil.