Weekly Market Review – July 18 − 22 2016
ECB Interest Rate decision will be this week’s main event
With the Brexit in the rearview mirror, the Bank of England’s meeting was the most important event last week. In spite of all forecasts and hints the bank still left the interest rates unchanged, which made the GBP rise against all of the other majors. Meanwhile, at the end of the trading week the US dollar became the favorite again thanks to solid statistics emanating from the US economy, with better than expected Retail Sales and Industrial Production reports. Additionally, the attempted Turkey coup caused demand for protective assets to skyrocket.
This week’s highlight will the ECB meeting scheduled for July 21, 11:45 GMT.
Major US stock indexes started grew to start last week thanks to Japanese Prime Minister, Shinzo Abe claiming victory in its parliamentary election. Additionally, new British PM Theresa May provided further support for the markets.
Earnings season kicked off last week in the US, producing solid results thus far. As a result most stock indexes have broken their long-term records.
Major stock exchanges across Europe grew significantly, with news from Japan and the UK providing crucial support. Meanwhile, investors were worried about Turkey coup attempt. However, it ultimately proved to be unsuccessful, causing little impact.
This week traders should pay attention to the upcoming ECB meeting, scheduled for July 21, 11:45 GMT.
Gold spent last week entrenched in a downward trend as tensions over the Brexit subsided somewhat, making it possible to close long positions on the asset. Additionally, the US dollar strengthened, causing further pressure some pressure. Currently, the precious metal is priced relatively high, making it less attractive for potential investors.