Welcome to another blogpost by AspireFX, we’ll be doing an overview of what has been happening in the markets as well as what news events to look out for this coming week.
US equities were trading above 10 000 most of last week but began taking a dip on Thursday as new reported coronavirus cases across the US began to rise. Another factor that contributed to the drop in price was when Apple products, along with other US goods, were held up at Indian airports.
US oil started last week off strong, trading above $40 per barrel but with US Crude Oil Inventories coming out significantly negative with a surplus of inventories as well as it being reported that Iran has been exporting way more oil to Venezuela than initially recorded, oil is now trading around the $38 mark.
We saw safe haven flows last week as fears of the second wave of coronavirus are heightening which saw Gold reaching $1779 per ounce, the current high for 2020. As of today, we are consolidating around $1770.
Elsewhere, Brexit talks will resume today after 4 weeks of ineffectiveness. There will be updates on negotiations and their progress throughout the week. Boris Johnson, UK Prime Minister, will outline a plan for progress tomorrow where they are looking to secure a trade agreement similar to the one made with Australia with zero tariffs being implemented on certain exported/imported goods. Look out for Michael Barnier’s press conference which will be held on Friday.
Notable news events for this week will be Britain’s GDP for the first quarter, Japanese Manufacturing Index as well as their Industrial Production data release, Canada will be releasing their GDP for April, the US Conference Board Consumer Confidence and with it being Independence Day on Friday in the United States, the NFP report will be released on Thursday.
As always, stick to your trading plan and always use the appropriate risk management when looking for trading setups. Click subscribe to receive our updates on our blog posts directly to your email.