Markets Week Ahead: US Dollar, Dow Jones, S&P 500, Microsoft, Coronavirus

Markets Week Ahead: US Dollar, Dow Jones, S&P 500, Microsoft, Coronavirus

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Market sentiment cautiously improved this past week as the Dow Jones and S&P 500 climbed, placing pressure on anti-risk currencies like the US Dollar and Japanese Yen. Gains were not spread out evenly however, this time around the tech-heavy Nasdaq Composite lagged behind the former two indices. Dismal earnings from Netflix might have contributed to this.

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Coronavirus cases continue to grow at record daily levels in the world’s largest economy, but thus far it has not been able to materially shift the outlook for 2021 GDP estimates. With that in mind, how government officials continue treating outbreaks will be key to watch. A reintroduction or more stringent lockdown measures could risk derailing bets of a swift economic recovery.

All eyes will remain on the ongoing earnings season, with attention particularly focused on tech companies as they defend their relatively elevated stock valuations. Microsoft will have its report this coming week on Wednesday. Other companies to watch include IBM, Intel, American Express, AT&T and Tesla.

The economic docket is also fairly light. The Canadian Dollar and British Pound await retail sales data from their respective countries. The US releases flash Markit PMI statistics on Friday. With that in mind, investors may put a greater premium on other critical fundamental news flow such as the next round of stimulus from the US after this weekend’s EU summit on a recovery package.

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Fundamental Forecasts:

Euro Forecast: Outlook for EUR/USD Positive After ECB and EU Summit

The week ahead is looking quieter but positive for EUR/USD and the Euro crosses after a busy few days that included both Thursday’s ECB meeting and the weekend EU Summit.

Australian Dollar May Wilt with Dow Jones, S&P 500 Looking Wobbly

The Australian Dollar may fall as rising US coronavirus cases may result in lockdowns being reinstated. The S&P 500 and Dow Jones also look wobbly with earnings season in full swing.

Crude Oil Weekly Forecast – Oil Price Supported by OPEC Demand Forecasts and Easing Production Cuts

OPEC+ producers will begin easing recent supply cuts from the start of August as demand continues to pick-up.

Gold Price Forecast: Gold Above $1800, What Next?

Gold prices are on course for a 6th consecutive weekly gain, the first time in over a year.

US Dollar Outlook Bearish on Economic Stabilization, Soft Haven Demand

The US Dollar may extend its losses against its G10 peers as signs of economic stabilization alleviate demand for haven-linked assets like the Greenback.

Nasdaq 100, Dow Jones, DAX 30 Forecasts for the Week

The major equity markets will look to another string of high profile earnings reports in the week ahead as other tech members throw their hat in the ring following a rough start to the season.

Technical Forecasts:

Euro Technical Outlook: EUR/USD RSI Approaches Overbought Zone

Another overbought reading in the Relative Strength Index (RSI) is likely to be accompanied by a further appreciation in EUR/USD amid the bullish behavior seen in June.

Hang Seng Index Technical Analysis: 25,000 The Critical Level to Watch

The Hang Seng Index is set to test a key support at 25,000 after falling 2.3% last week, wiping out almost two weeks of gains and entering into consolidation.

Japanese Yen Forecast: Net-Long JPY Bias May Fuel AUD/JPY, EUR/JPY

The AUD/JPY and EUR/JPY exchange rates may rise as IG Client Sentiment shows increasing net-long Japanese Yen exposure.

Crude Oil Price Struggles For Momentum- Brent Oil Forecast

This week, Crude oil surged to a multi-week high then fell after. Will Brent oil resume bullish price action in the coming days?

Sterling Price Outlook: Pound Contracts Below Critical Resistance

Sterling is poised to snap a two-week winning streak with GBP/USD holding just below critical resistance. Here are the levels that matter on the weekly chart.

Canadian Dollar Forecast: USD/CAD Range in Need of Breaking

USD/CAD has been stuck in a range the past month, but at some point this will give-way to a move; levels and lines to watch in the days ahead.

US Dollar Technical Forecast: USD Meets Big Support – Can Bulls Hold?

The US Dollar has pushed back down to a key support level that’s helped to hold the lows since March of 2019. Can sellers finally pose a downside breach?

US DOLLAR WEEKLY PERFORMANCE AGAINST CURRENCIES AND GOLD

Currencies vs gold

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