It’s Another week -by – Michael Oyebamiji

This week seems to have started on a negative note from the Asia market. Overnight, the Japanese Second quarter GDP data missed market forecast; GDP (QoQ) 0.0% Vs 0.2%, GDP (YoY) 0.0% vs. 0.2%, GDP Capital expenditure -0.4% vs. -0.1% while Industrial production beat market forecast at 2.3% vs. 1.9%. These set of weak data will put more pressure on the Bank of Japan in terms of what policy to adopt next in other to help the falling economy. This means we might eventually see the arrival of Helicopter money.

This week is going to be a very busy week as there are whole lot of economic data ahead of the market. News from all the major economies will be released all through the week. some major currencies to keep an eye on is the USD, USD was relatively weak last week because of disappointing economic data (Retail sales) and markets speculation about FED will not raising rate anytime soon. Also, AUD and Kiwi are two currencies to watch, let us recall that both central banks (RBA & RBNZ) cut their interest rate to a record low last week. The Two currencies have rallied up massively despite the rate cut.  Cable (GBPUSD) is also another pair which seems to continue the down trend, there are quite a few economic data from the UK economy later in the week, if we see stronger than expected data, I think we should watch out for a bounce off the 1.29 level towards 1.30-1.33. Eurusd is also struggling to find a close above 1.20/25. If USD weakness continues, then we might see a close above this level, but I think there is more downside on EURUSD.