Focus BoJ policy – World shares may be pressured

U.S. President and European Commission President pledged on Wednesday to resolve steel and trade tariffs, which were seen as positive development, and easing trade tensions so world stocks rose up on Thursday. But Dow Jones edged lower from technology shares even U.S. GDP of second quarter was good. The lower U.S. stock market combined with trade war which analysts concern about the lack of detail in negotiations may pull stock markets in Asia trade lower.
The easing trade tension and Fed monetary policy helps U.S. dollar firm against major currencies last week, except Japanese yen. Investors focus on Bank of Japan meeting this week because it may change the monetary policy and interest rate. Today, USD/JPY may continue moving in the narrow frame around 110.65-111.25 points await BoJ meeting tomorrow. Furthermore, gold price may try to hold above 1,220 dollar after falling from the steady dollar. The lack of houses in U.S. property market makes house price rise up historical high and the higher interest rate may pressure pending home sales which will release today.
According to the 4 hour TF graph of Bitcoin, it may building the reversal pattern “Head and shoulders” to rise up to 8750 dollar, if it can break neck line at 8250 points. In contrast, the low volume may pressure Bitcoin price drip lower to 8,000 dollar.
Economic indices in focus:
• USA: Pending Home Sales (Jun) at 21.00

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review