Weekly Outlook | Equities sideways, crypto ruling while FX might get a push
Updated Updated Tue, 2025 July 22 01:37
Important events this week:
Markets remain calm during the summer season and the current week might offer only limited fundamental data to move markets sharply. However, the recent gain in the crypto market remains noticed, potentially offering more upside ahead. Equities remain subdued, whereas the current earnings seasons is supposed to play a big role as well. Traders should keep an eye on earnings from Tesla, Coca Cola, Alphabet and Intel just to name a few. The big companies might be able to give further insights into the US market and hence could also ignite fresh upside momentum again.
Furthermore, the interest rate decision of the ECB also remains important on Thursday, a big day with many news events to follow up this week. Using tight stops might be a wise choice as markets might jump around erratically during the trading days in summer.
– EU- Purchasing manager indices- The PMI data from France and Germany will offer further insights into the European economy. Our expectation for the release last month was positive but the data was disappointing but not harming the Euro much. Instead, the common currency was still able to run higher. PMI data from France is expected slightly lower compared to the German figures this time.
DAX, weekly chart
The DAX might be interesting in this case. Positive PMI data, in particular from Germany, could give the German stock index another boost. Higher prices even beyond the 24.400 level might ignite another push to the upside, while a correction towards the previous support zone at 23,230 could offer cheaper entry prices again. Both PMI data will be released on Thursday, 24th July at 09:15 CET and 09:30 CET respectively.
– EU- Interest Rate Decision- The probably most important news event will be from the ECB this week. It is not expected that the central bank will cut interest rates. This, in general, might support the EUR again. The common currency had lost some steam during last week’s trading. Sitting at 2.15% the rate is much lower compared to the US but the Euro has been able to gear up sharp momentum this year. The main reason behind this is that also the Fed will cut rates further, which will eventually happen.
EURUSD, weekly chart
The EURUSD currency pair above shows, that the market is still on track to move higher. A break of the 1.1800 technical resistance zone might open up the way towards the 1.2200 region. The second half of the month might be interesting here, as prices might retrace higher again. The interest rate decision will follow on Thursday, 24th June at 14:15 CET.
