Trading Insights: Dive in and discover your next trade

Chart 1 Source TradingView July 12th 2023 7:43 AM UTC

The above chart illustrates the multi-month trend for the headline US inflation rate.

Market Commentary

• EUR/NZD firmly above its 50 day moving average; further upside can not be ruled out
  New Zealand held its interest rate unchanged at 5.5%; RBNZ sees the need to keep the rate high for the “foreseeable future”
• US Core Inflation due today at 12:30 PM UTC; high price action across USD assets expected
  Gold price remains in a downtrend despite the recent 4 days of gains; current price remains below its 50 day moving average
• Bank of Canada (BOC) heads towards 5% interest rate; BOC expected to hike 0.25% today at 2pm UTC
  USD/CAD bearish outlook below 1.3385 resistance; further downside towards 1.3120 can not be ruled out
• Crude Oil holding recent gains on the back of lower OPEC production
  Brent crude oil cleared above the $78.50 resistance, opening the door for the prospects of a further move higher toward the $80 zone

Today’s economic calendar

Source: TradingView / J. Knobel July 12 2023 7:15 AM UTC

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Earnings Season kicks off this Friday!

Earnings season is when most of the US exchange-traded companies report to investors their latest financials. It's a key period for stock indices since the financial performance of these companies is a reflection of either the strength or weakness of the economy.

If a company reports strong earnings it is normally viewed as a positive event for the company and vice versa. If lots of companies are reporting strong earnings it's a sign of a strong economy.

High price action is typically expected around the time before and after a company releases its earnings report.

Below is the table of a few high profile US companies that are due to report earnings this week:

Source: Tradingview July 11 2023 6:53 UTC

The above table indicates the expected earnings per share estimate for the companies that are due to report.

Indices to keep an eye on during earnings season: SP500, Dowjones 30, and the US100.

Do you have an opinion on where financial markets are heading? Express your opinion and trade with CFDs.

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Trading insights & strategy

EUR/USD pierced above the 1.1012 resistance

EUR/USD Current price 1.1025 managed to test and trade above the 1.1012 key resistance, opening the door for the prospects of an advance towards the March 31 2022 highs spotted near 1.1185. Downside risk below the 1.0834 key support.