- Trump and Putin to start first summit in Poland this week
- Bitcoin sentiment remains negative
- USD/JPY could represent buy opportunity this week
As the new trading week gets underway, there is quite a lot happening this week that could have an impact on markets.
Today, Russian President Vladimir Putin and US President Donald Trump will start their first summit in Finland. Although no dramatic developments are expected from the meeting, it’s an important opening move for both nations. If the two leaders hit it off on a positive note, it could benefit international markets.
The most important economic report will be US retail sales. Last month saw an increase of 0.8%, which led to a strong upsurge in the dollar. While it’s unlikely to repeat itself this week, it’s not impossible – and such a move could have a major impact.
Stocks will become a core focus later in the week as the US earnings season gets into top gear. In addition, US Federal Reserve Chair Jerome Powell will testify before Congress this week.
In the Bitcoin market, the bears remain firmly in control for now, despite the fact that it found support at $6,100. The current downtrend remains strong, and the $6,000 level is likely to be tested this week.
The USD/JPY surged upward last week, creating a great long opportunity for this currency pair. It was a strong upward move, but the USD (as reflected in the US Dollar Index) was unable to break out toward the upside. It also fell at important resistance. Another factor that played a role was the relatively week JPY.
There is still a lot of strength in the USD/JPY, and many traders are expected to start buying at the present level. Those who do should ensure their stop losses leave them with sufficient wiggle room.