July brings us the never-ending classics of USD, GBP, EUR, JPY and Gold - that’s what people are waiting to trade on, so here’s a little preview of what to expect and look for.
EUR/USD
This currency pair always stands out as the most popular among many others, and we have a lot to expect from it in terms of economic events.
What to look for here?
Recently the price rate for EUR/USD stabilized, making it relatively even in comparison to previous changes in rates within the last few weeks, setting EUR at 1.1300. That jump in price happened due to the delay in the decision regarding the interest rates - instead of July, we need to wait for the decision from the Central European Bank in September.
What to expect next?
Look out for major events in the economic calendar. The ones you definitely should pay attention to are:
- Non-farm payrolls
- Consumer Price Index
- Markit PMI Composite
Experts expect the trend to be Bearish, which will allow traders with short-term positions to benefit from it. The change, however, is expected to be slow.
For those who prefer intraday trading and sudden changes in price, you can definitely check Fed’s Chair Powell Speech - usually market responds really well even to the slightest hint of changes in such speeches and reports.
GBP/USD
For a long time, Brexit has been a hot topic in many spheres, and economics is no exception.
What to look for here?
No-Deal Brexit statements and recent changes in governmental positions didn’t do GBP any good. Following the changes in the price rate since 28 June, a sharp fall is hard to miss. Most investors stay away from making big deals due to uncertainty regarding the forecast of GBP and prefer to wait for some clarity before entering the market.
What to expect next?
Everyone is waiting for the US Non-farm payrolls and decision concerning interest rates in order to have a possibility to catch this wave of volatility. As usual, you should keep an eye on every meeting, speech, report and statement regarding Brexit decisions or discussions in order to be the first one to place in order in the correct direction. Don’t forget to turn your notifications on!
USD/JPY
Despite the lack of obvious and strong movements in the price for this currency pair, it’s still relevant for trading, especially during the Asian trading sessions.
What to look for?
At the beginning of July, not many things have happened due to the nations holiday in the US and the absence of any significant events in the Japanese economy. Still, the whole world is waiting for the Non-farm Payrolls to be published to see the supposed direction and make a proper strategy for further trading.
What to expect next?
It’s still all about Non-farm Payrolls data. Stay tuned on this event before making any assumptions or planning your investment. Prepare your support and resistance lines for proper analysis and make sure you count in all the data available.
As for the future events, you can definitely check out BoJ interest rate decision that takes place on the 30th of July.
XAU/USD
Most investors still prefer to navigate familiar waters of trading on Gold, and still, there are a lot of things to look out for while entering this particular type of trading.
What to look for?
It’s not that hard to notice a major downfall for Gold prices that marked the beginning of July. That large dip sure got us all worried, but looking at a chart right now, the worries of analytics regarding the bearish trend going on didn’t come true. For the moment, future dips are supported and the price has come to slow but steady growth, forming a bullish trend.
What to expect next?
Within the next week, the movement is expected to remain more or less stable, providing possibilities for intraday traders to benefit from short-termed volatility, but overall experts tend to think that slow reduction of price for Gold waits for us ahead. Prepare your technical analysis tools and get ready for a new strategy!
Bottom line
Those were the most popular assets to choose for the month of July, but keep a closer look at other pairs, since the correlation with any of the currencies mentioned above can give you a huge benefit in your trading.
As always, don’t forget about the economic calendar and get ready for a hot summer!
