Weekly Market Commentary | 29.07 - 04.08

Monday

• Quiet Day: No major tier-one economic data is scheduled.

• Earnings Highlight: McDonald's is set to release its earnings report, which could provide some insights into the consumer spending patterns.

Tuesday

• German Preliminary CPI: Expected at 0.3%, this will offer a glimpse into the inflation trends in Europe's largest economy.

• U.S. Data: CB Consumer Confidence expected at 99.8, and JOLTS Job Openings will provide indicators of economic health.

• Earnings Spotlight: Microsoft will report its earnings after the market closes, a key event for tech sector watchers.

Wednesday

• Australian Inflation: Expected to drop to 3.8%, a crucial data point for AUD traders.

• Japan's Rate Decision: Investors will be keen to see any shifts in monetary policy.

• Eurozone CPI Flash Estimate: Expected at 2.4%, vital for Eurozone inflation outlook.

• U.S. Economic Indicators: ADP Non-Farm Employment Change and GDP from Canada (expected at 0.2%).

• U.S. Interest Rate Decision: Fed expected to keep rates at 5.5%, but statements will be closely analyzed.

• Earnings Galore: Meta Platforms, Mastercard, T-Mobile, and Qualcomm will present their results.

Thursday

• UK Interest Rate Decision: A 25 basis points cut is expected, crucial for GBP.

• U.S. ISM Manufacturing PMI: Expected at 49, a vital indicator of manufacturing sector health.

• Big Earnings Day: Reports from Apple, Amazon, and Intel are anticipated, with significant market impact expected.

Friday

• Swiss Inflation: Key data point for CHF traders.

• U.S. Non-Farm Payrolls: Expected at 177,000, a major indicator of U.S. employment health.

• Earnings Reports: Exxon Mobil and Chevron will release their earnings, important for the oil and gas sector.

Setups for This Week:

EUR/USD

Primary View:

• The price is currently forming a flag pattern marked with black lines.

• A breakout to the downside is anticipated, especially with the orange horizontal resistance confirmed and a bounce off it, indicating negative sentiment.

Alternative View:

• A move back above the orange resistance would signal a buy.

USD/JPY

Primary View:

• The price is bouncing off the orange horizontal support.

• A breakout above the red downtrend line would signal a proper buy opportunity.

Alternative View:

• A break below the orange horizontal support would be a sell signal.

NZD/CAD

Primary View:

• The price is testing two key uptrend lines (red and black), but there is no significant demand, indicating weakness.

• A breakout to the downside seems highly probable.

Alternative View:

• A break above the green resistance would signal a buy.