Focus on summit in Finland – Unbanned ZTE

The US President had created the diplomatic chaos last week - first at a fiery NATO meeting in Brussels and then in London with Theresa May. The recent uncertainty Brexit in the United Kingdom may pressure British pound fall lower than 1.3200 dollar on Monday. Furthermore, Trump will meet Russian president in the capital of Finland Helsinki today. This week market may recover from the easing trade war tension between the USA and China and investors may focus on earning season of second quarter such as Google. Additionally, The US has unblocked Chinese tech giant ZTE from doing business with US companies. These positive factors may support Asian stock markets.
Asian markets will focus on Chinese GDP in second quarter that may add positive support for Shanghai market and others Asian markets. I think in the second quarter Chinese economy may grow up as the trade tariff did not affect.
The U.S. dollar may hold steady as the reaction to Fed monetary policy so if euro cannot hold above 1.1650 points, it may fall to 1.1600 points on Monday. In my opinion, gold price may try to hold above the support line at 1,240 dollar. Moreover, Bitcoin price also may try to hold above 6,100$, moving in the narrow frame 6,150-6,400 dollar.
Economic indices in focus:
• China: GDP (Q2) and Industrial production (Jun) at 09.00 a.m.
• USA: Core retail sales and Retail sales (Jun) at 19.30 p.m.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review