The International Monetary Fund (IMF) has lowered its growth forecast for this year for the U.K. economy after a weak performance in the previous quarter of 2017. The IMF says that it now expects the U.K. to grow by 1.7 percent, compared to the 2 percent it forecasted previously. It cuts its U.S. gross domestic product forecast for 2017 to 2.1 percent from a prior forecast of 2.3 percent in April. It also predicts that the global economy will grow by 3.2 percent in 2017 and 3.6 percent in 2008.
source:BBC News, Investing.com
Elsewhere, Germany will release its Manufacturing Purchasing Managers Index for July at 07:30 GMT today, while the U.S. Existing Home Sales for June is due at 14:00 GMT. The car firm Volkswagen (VW) stated that it will not pay the “£2.5m Sadiq Khan claims it owes in missed congestion charge payments, following the 2015 emissions-rigging scandal.” The Mayor of London, Sadiq Khan said 80,000 VW engines fitted with “defeat devices” were registered in London. In 2016, a U.S. court charged VW a fine of $14.7bn (£12bn) settlement over the scandal.
Alphabet Inc. will be releasing its second quarter earnings report for the fiscal month ending June 2017 after market closes today. The earnings per share is expected to be at $8.25 compared to that for the same quarter last year. Meanwhile, the European Union’s fine of $2.7 billion to the company could impact earnings for this quarter. Shares of Alphabet gained 16 percent in the past three months.
The international benchmark, brent crude recorded a huge sets of pullbacks on Friday, starting from the $49.53 a barrel at 09:00 UTC to close this downtrend in the evening by 18:00 UTC at a low level of $47.83 a barrel. In today’s early trading hours, it was seen fluctuating on the commodity market. Around 03:00 UTC, it started losing momentum. It may tumbled further through today, keep a close watch.
Since the end of last week, the dollar index was seen losing value on the market, and it wa quoted at its lowest at the 93.86 level at 18:00 UTC on Friday. The asset, however, started this week bullishly at 00:00 UTC at the 93.84 level. It was recorded on a bullish candle at the 93.92 level around 02:00 UTC. It may gradually rise further through the day, keep a close watch on this asset’s trend.
Since Friday, the EUR/JPY pair is seen following a downtrend and it even ended its session bearishly at 129.594 yen at 20:00 UTC. In today’s session, the currency pair was seen much volatile and it was last quoted on a bullish candle at the 129.584 around 04:00 UTC. It could maintain this volatility through the day, use the 60 Seconds trading for this one. Japan is set to release its monetary policy meeting minutes at 23:50 UTC, this could affect its trend.
Things to watch on the market
The downgraded value forecasted by the IMF depicts a weak start to the year and thus, it is advised to pay much attention to the U.S. dollar and the pound sterling as trends could be affected ahead of GDP data releases due this week.
Consider trading on assets such as EUR/USD, EUR/GBP, GBP/USD and the DAX index. Shares of the world’s largest car manufacturer, Volkswagen may drop amid the scandal issue.
It is advised to trade on shares of Alphabet, and pairs such as Apple vs Alphabet and Alphabet vs Facebook once these are available on the trading platform.