The Week Ahead – Pull the trigger
<div><img width="750" height="430" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160757/The-Week-Ahead.webp" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="week-ahead" decoding="async" loading="lazy" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160757/The-Week-Ahead.webp 750w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160757/The-Week-Ahead-300×172.webp 300w" sizes="(max-width: 750px) 100vw, 750px" /></div><h2><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07161019/Screenshot-2023-07-07-170948.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-204591 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07161019/Screenshot-2023-07-07-170948.png" alt="Table" width="1576" height="525" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07161019/Screenshot-2023-07-07-170948.png 1576w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07161019/Screenshot-2023-07-07-170948-300×100.png 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07161019/Screenshot-2023-07-07-170948-1024×341.png 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07161019/Screenshot-2023-07-07-170948-768×256.png 768w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07161019/Screenshot-2023-07-07-170948-1536×512.png 1536w" sizes="(max-width: 1576px) 100vw, 1576px" /></a></h2>
<h2>USDCAD consolidates ahead of BoC hike</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160532/USDCAD.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204586 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160532/USDCAD.webp" alt="Chart of USDCAD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160532/USDCAD.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160532/USDCAD-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160532/USDCAD-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160532/USDCAD-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The Canadian dollar pulled back as the market underpriced the possibility of a rate hike. However, recent economic data have left the door open for the BoC to lift interest rates at the upcoming meeting. Canada’s economy picked up steam in May after stalling in April, and a resurgence in the housing market combined with tightness in the job market is likely to keep the central bank on its hawkish pathway in an attempt to make inflation return to the 2% target. Another 0.25% hike along with an assertive forward guide could play in the loonie’s favour. The pair is testing a former support at <strong>1.3400 </strong>with <strong>1.3120</strong> as a fresh support.</p>
<h2>NZDUSD awaits RBNZ rate decision</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160636/NZDUSD.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204587 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160636/NZDUSD.webp" alt="Chart of NZDUSD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160636/NZDUSD.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160636/NZDUSD-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160636/NZDUSD-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160636/NZDUSD-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The New Zealand dollar drifts lower as a shallow recession puts rate hikes in doubt. Growth slipped into negative territory in Q4 2022 and Q1 2023, well below the central bank’s forecast, and more contraction in economic activity is expected in the second half of the year as previous steep rate hikes come into full effect. The market hopes that officials would leave the OCR unchanged at 5.50% in the face of a downturn. But the RBNZ’s determination to hit the brakes hard cannot be underestimated. An upside surprise would be another incremental hike, potentially sending the kiwi towards <strong>0.6380 </strong>with <strong>0.6000</strong> as a key support.</p>
<h2>XAUUSD falls as rates keep climbing</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160656/XAUUSD-2.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204588 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160656/XAUUSD-2.webp" alt="Chart of XAUUSD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160656/XAUUSD-2.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160656/XAUUSD-2-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160656/XAUUSD-2-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160656/XAUUSD-2-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>Gold pulls back on the prospect of high interest rates for longer. Strength in the US labour market alleviates concerns about a recession but fans fear that higher interest rates could become the new normal for the foreseeable future. With another 25-basis-point hike from the Fed this month and the yield on 10-year Treasury notes on the rise, the non-yielding metal seems to have little to offer. However, geopolitical risks may swing the market mood again as brewing trade tensions between China and the US could trigger a flight-to-safety. Then gold may shine once again and climb above <strong>1980 </strong>with <strong>1900 </strong>as the closest support.</p>
<h2>NAS 100 slows down over US-China trade worries</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160732/US100.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204589 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160732/US100.webp" alt="Chart of US 100" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160732/US100.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160732/US100-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160732/US100-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/07160732/US100-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The Nasdaq 100 drifts sideways over the risk of escalation in the US-China trade dispute. As investors expect another rate increase at the next Fed meeting later this month and the tightening campaign to draw to an end soon, they might have shifted their attention eastward. Tensions between Beijing and Washington over access to high-tech chips could spill over market sentiment amid an AI race. China’s response to the US export curbs by restricting metals that the semiconductor industry rely on could take a toll on a largely AI-driven tech rally. The index is hovering under <strong>15700 </strong>and <strong>14300</strong> is the immediate support.</p>
<p>The post <a rel="nofollow" href="https://www.orbex.com/blog/en/2023/07/the-week-ahead-pull-the-trigger">The Week Ahead – Pull the trigger</a> appeared first on <a rel="nofollow" href="https://www.orbex.com/blog/en">Orbex Forex Trading Blog</a>.</p>
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