July 16, 2018

IronFX, Week in Focus - Meeting of Putin & Trump and 'no Brexit at all'?

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Important economic highlights of the day and the week.

This article is originally referred from IronFX News.

Putin – Trump meet in Helsinki

On Monday, Presidents Vladimir Putin and Donald Trump meet on their long awaited summit.

Ahead of the meeting and last Friday, 12 Russian intelligence officers were found guilty by the federal grand jury for hacking Democratic computer networks, with the intention of manipulating citizen votes in the 2016 US presidential elections.

During the past weekend, Trump was under pressure from several members of Congress from his own party to finally confront Putin on the matter.

However, after their last meeting back in November, Trump refused to follow up on the matter again as he believed that Putin’s denial of interference was truthful.

It is our opinion that both presidents have much to gain with conversation instead of confrontation and market participants will be interested to see what other subjects will be discussed excluding security matters.

Should there be positive developments on the US Russia relationships in the meeting, we could see the USD strengthening and vice versa.

USDJPY rose on Monday’s opening indicating some bullish appetite, after a small downward movement was observed on its Fridays latest session.

The pair could remain in a sideways movement between the (R1) 112.75 resistance level and the (S1) 112.05 support level with some bearish tendencies as the financial data to be released in the American session today could weaken the USD.

Please note that the RSI indicator remains close to the reading of 70 implying an overcrowded long position on the 4 hour chart.

Should the pair continue to be under buying interest we could see the pair breaking the 112.75 (R1) resistance line and aim for the 113.65 (R2) resistance level.

Should it come under selling interest we could see it breaking the 112.05 (S1) support line and aim for the 111.30 (S2) support barrier.

Theresa May warns on ending up with ‘no Brexit at all’

On Sunday, UK’s PM Theresa May made it clear to her divided party that there could be “no Brexit at all” if they resisted her plan to keep a close relationship with the EU after the Brexit.

May also asked for the UK to support her plan for “friction-free movement of goods”, adding her intention is to avoid conflicts in Northern Ireland and to keep unity within the United Kingdom.

In the next days, over the course of two debates in parliament the extent of uncertainty will be shown and should the circumstances remain as current the GBP could weaken.

Despite the uncertainty, Cable opened with a positive upward movement during Monday’s opening and remained in a sideways motion in the European morning.

Please note that the RSI indicator is very near the reading of 50 which could imply that traders are somewhat unsure of the pair’s direction for the day.

Should the bulls take over the market we could see the pair breaking the 1.3280 (R1) resistance line continuing higher aiming for the 1.3351 (R2) resistance level.

Should the bears dominate the pairs direction we could see it breaking the 1.3215 (S1) support line and aim for the 1.3125 (S2) support barrier.

In today’s other economic highlights:

In the European session we get Eurozone Trade Balance (May) and in the American session we get the US Retail Sales and the Core Retail Sales both for June.

As for the rest of the week

On Tuesday, we get New Zealand’s CPI for Q2, the UK’s Employment Data (May) and the US Industrial Production (Jun).

On Wednesday, UK’s Inflation data, Eurozone Inflation data, the US Building Permits all for June and the Crude Oil Inventories weekly figure.

On Thursday, we get Japans Trade Balance, Australia’s Employment Data and UK’s Core Retail Sales and Retail Sales all for June along with the US Philadelphia Fed Manufacturing Index for July.

On Friday, we get the Japanese Core CPI and CPI, from Europe we get Germanys PPI both for June, and from the US the Canadian Inflation Data for June and Retail Sales for May. Last but not least we get the OPEC meeting.

Original Source: IronFX News

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