The Tuesday session starts out with absolutely nothing going on in Asia as far as economic announcements are concerned, and as a result we feel that the US session will be the one to pay the most attention to. That being said, the US Durable Goods Orders number from the month of July is anticipated to be 7.1%, and a good number could push the stock markets higher. Most especially interesting is going to be the S&P 500, which tested the 2000 level during the day on Monday. If we can get a good number, it’s very likely that we will break out above the 2000 handle.
Don’t forget the USD/CAD pair as well. It has formed a hammer up against the 1.10 resistance barrier, and as a result it’s very likely that a break out would ensue if we get something above the anticipated 7.1%.
The US Housing Price Index number comes out for the month of June, anticipated to come in at 0.3%. While this is not a massive announcement, it could also have an effect on the stock markets. What will be especially interesting is if the Durable Goods Orders number comes out strong, as well as this one. Consider that a “double whammy” for the US stock indices in general, and probably the US dollar as well.
US Consumer Confidence also comes out, which of course can move the markets also. The anticipated 88.5 reading is relatively high, and therefore needs to be met in order for the afternoon stock trading in the United States to continue going strong if we get positive news in the morning.
All that being said, the EUR/USD pair will more than likely offer trading opportunities as well, as the pair seems like it’s ready to continue going lower. We believe that with a few good announcements, we could have a strong day for US assets on the whole. Obviously, this can work in the opposite direction as well, so pay attention to those assets as we suspect that other markets will probably lag we see happening in New York.