By Chris Becker
Another great week full of opportunities for short term traders and full requirement for hedging and protection for long only holders of stocks. Most major stock markets are in or nearing correction territory, led by Chinese stocks, as the Trump trade war continues to send reverberations through risk markets. The USD is pushing the currency market in a similar fashion and while Euro has rebounded somewhat on the immigration deal on Friday night, the structural imbalance – led by a stated year or more of purposeful weakness by the ECB – will continue to weigh on the union currency and other undollar assets.
The economic calendar culminates in the most important monthly release – US unemployment on Friday. But before that we locally get the RBA meeting on Tuesday, then US ISM manufacturing and the release of the Fed’s June minutes.