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THIS WEEK IN THE FOREX MARKETS
Trading Insider | 20 th July 2020
JPY May Fall if PMI Data in Key Supply Chain Economies Brightens Outlook
On Friday, Wall Street stocks ended on an upbeat note. The Dow Jones, S&P 500 and Nasdaq indices closed 0.44, 0.77, and 1.49 Percent higher, respectively. In the S&P 500 benchmark, the technology sub-component led the way, with index heavyweight Apple Inc (APPL) up over 10 percent by Friday’s close. This may help explain why the tech-leaning Nasdaq index was the session’s champion. Its rise came as part of a broad rally in the technology sector and after an impressive earnings week for four out of the five members of the so-called FAANG group (Facebook, Apple, Amazon, Netflix and Google). Alphabet – Google’s parent company – was the loner who posted its first quarterly year-over-year revenue decline.Learn more about why technology stocks have rallied amid the coronavirus pandemic. However, foreign exchange markets reflected a risk-off tilt. The haven-linked US Dollar trimmed some of its losses after reports that US lawmakers were no closer to ratifying another stimulus bill caused a flight to safety. The Euro was starved for love after Q2 GDP data printed record-breaking lows. AUD and NZD suffered with the commodity-linked Swedish Krona.
MONDAY’S ASIA-PACIFIC TRADING SESSION In addition to thorny US-China relations, Asia-Pacific traders will be closely watching a cascade of PMI data from key regional supply chain economies. See the list here. If the statistics show on balance a polished outlook for growth despite a growing number of Covid-19 cases, the Japanese Yen’s anti-risk appeal may wilt while the allure of growth-oriented assets like the Australian and New Zealand Dollars may bloom. Read more...
