The Markets Show Appetite for Risk Again (Weekly Review)

The topic of the spread of coronavirus, in particular in the United States, no longer worries the minds of investors as much as a couple of weeks ago. The improved prospects for the development and launch of antiviral vaccines by a number of pharmaceutical companies have contributed to an increase in risk appetite, and along with it the indices showed a predominantly positive attitude, and the USD was subject to pressure from sellers.

Thus, such risk-sensitive currencies as the AUD and NZD stubbornly tried to break higher, closing the week near the resistances of 0.6945 and 0.6535, respectively. Nevertheless, to break through correction highs these currencies may need additional incentives, otherwise they will face a deeper correction.

The GBP was able to win back some of the losses it had previously suffered, but the bulls should be extremely careful, since its growth is associated exclusively with speculators taking profits in short positions, and the lack of progress in trade negotiations between the UK and the European Union leaves the GBP in a vulnerable position, and its growth can be used for sales.

Schedule for this week:

Monday, July 6
09:00 GMT - Eurozone. Retail Sales;
14:00 GMT - USA. ISM Non-Manufacturing Purchasing Managers Index (PMI).

Tuesday, July 7
04:30 GMT - Australia. Reserve Bank of Australia (RBA) Interest Rate Decision;
04:30 GMT - Australia. Reserve Bank of Australia (RBA) Rate Statement;
06:00 GMT - Germany. Industrial Production;
15:00 GMT - Canada. Ivey Purchasing Managers Index (PMI).

Wednesday, July 8
23:50 GMT - Japan. Current Account n.s.a.;
05:45 GMT - Swirzerland. Unemployment Rate;
14:00 GMT - Eurozone. Vice-President of the European Central Bank Luis De Guindos Speaks.

Thursday, July 9
01:30 GMT - Australia. Invest Housing Finance;
01:30 GMT - PRC. Consumer Price Index (CPI);
06:00 GMT - Germany. Trade Balance;
12:30 GMT - USA. Initial Jobless Claims.

Friday, July 10
12:30 GMT - Canada. Employment Change;
12:30 GMT - Canada. Unemployment Rate.

Author: Anthony Porter, IAFT Analyst