The Week Ahead – End of tunnel

<div><img width="750" height="430" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093528/The-Week-Ahead-1.webp" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="The Week Ahead" decoding="async" loading="lazy" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093528/The-Week-Ahead-1.webp 750w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093528/The-Week-Ahead-1-300×172.webp 300w" sizes="(max-width: 750px) 100vw, 750px" /></div><h2><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093049/Screenshot-2023-07-17-102709.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204930 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093049/Screenshot-2023-07-17-102709.webp" alt="Time Table" width="1584" height="461" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093049/Screenshot-2023-07-17-102709.webp 1584w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093049/Screenshot-2023-07-17-102709-300×87.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093049/Screenshot-2023-07-17-102709-1024×298.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093049/Screenshot-2023-07-17-102709-768×224.webp 768w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093049/Screenshot-2023-07-17-102709-1536×447.webp 1536w" sizes="(max-width: 1584px) 100vw, 1584px" /></a></h2>
<h2>GBPUSD rallies over tightening prospect</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093126/GBPUSD-1-1.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204931 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093126/GBPUSD-1-1.webp" alt="Chart of GBPUSD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093126/GBPUSD-1-1.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093126/GBPUSD-1-1-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093126/GBPUSD-1-1-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093126/GBPUSD-1-1-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>Cable rallies as the Bank of England has hands tied to keep raising interest rates. Despite a slight uptick in the unemployment rate in the UK, record high wage growth may keep the central bank in the hot seat as the UK grapples with an inflation rate that is running higher than in any other major economy. Governor Bailey&#8217;s vow to stick to the plan has convinced traders that a battery of hikes are coming with a peak up to 6.5%, the highest in 25 years, and a hot CPI would cement these expectations. Meanwhile, the dollar’s retreat would boost Sterling’s relative strength. <strong>1.3300 </strong>is the threshold and<strong> 1.2700</strong> the closest support.</p>
<h2>AUDUSD bounces on improved risk appetite</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093212/AUDUSD-2.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204932 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093212/AUDUSD-2.webp" alt="Chart of AUDUSD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093212/AUDUSD-2.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093212/AUDUSD-2-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093212/AUDUSD-2-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093212/AUDUSD-2-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The Australian dollar advances over a resurgence of risk sentiment. After the RBA held its official cash rate steady at 4.1% earlier this month, market participants are waiting to delve into the details leading up to the decision. With its kiwi neighbour also holding fire, one might start to believe the hard push in the southern hemisphere could be behind. If the upcoming unemployment figure shows some sort of loosening, that might further build the case for a milder approach by the central bank from here, which in turn would boost the appeal for the growth-sensitive aussie. <strong>0.7000</strong> is the next resistance and <strong>0.6600</strong> the closest support.</p>
<h2>UKOIL recovers as demand pessimism fades</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093347/UKOIL-2.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204933 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093347/UKOIL-2.webp" alt="Chart of UKOIL" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093347/UKOIL-2.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093347/UKOIL-2-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093347/UKOIL-2-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093347/UKOIL-2-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>Brent crude claws back some losses as traders hope demand would recover later this year. Easing inflation in the US has fuelled speculations that the world is seeing through its most aggressive interest rate hike cycle over the past few decades. On the opposite side of the spectrum, further quantitative easing in China might be necessary to shore up momentum in post-pandemic recovery. Global economic headwinds have so far been limited and the International Energy Agency forecast that oil demand would hit a record high this year. An uptick in optimism could trigger short-covering towards <strong>87.00 </strong>with <strong>76.30</strong> as fresh support.</p>
<h2>SPX 500 advances on softer US inflation</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093409/US500.webp"><img decoding="async" loading="lazy" class="aligncenter wp-image-204934 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093409/US500.webp" alt="Chart of US500" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093409/US500.webp 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093409/US500-300×157.webp 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093409/US500-1024×535.webp 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/07/17093409/US500-768×401.webp 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The S&amp;P 500 extends gains in the hope of an end to the tightening amid subsiding price pressures. Both producer and consumer data point to a slowdown in the inflationary trend, leading market participants to expect the 25bp rate increase by the Federal Reserve later this month to be the finale, which would mostly benefit growth-related stocks as the index recovers towards a 16-month high. Now that investors have their focus on the second-quarter US earnings season, decent results would smooth out the fear of uncertainty and compound an overall positive mood. The index is on its way to <strong>4640 </strong>with <strong>4330 </strong>as the first support.</p>
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<p>The post <a rel="nofollow" href="https://www.orbex.com/blog/en/2023/07/the-week-ahead-end-of-tunnel">The Week Ahead &#8211; End of tunnel</a> appeared first on <a rel="nofollow" href="https://www.orbex.com/blog/en">Orbex Forex Trading Blog</a>.</p>