Important events this week:

This week markets will likely be influenced by the Summit between Trump and Putin in Alaska. According to them the talks had been productive offering a potential deal for peace in the Ukraine. Observers point out that Putin seemingly remains with his positions that currently occupied territories will belong to Russia to stop the fighting.

In general potential chances of peace in the region would likely cause gold prices to come under pressure while also the price of oil might weaken further. Vice versa the German DAX might push higher as risk sentiment in the Eurozone might get another boost as well.

Markets will face only limited news releases this week. On Thursday the various purchasing manager indices from the Eurozone as well as the United States might give market participants more clarity in terms of the economic development. Traders should take a closer look at the EURUSD, GBPUSD among other USD- related currency pairs. The annual symposium in Jackson Hole might also offer market volatility moving forward. The meeting with influential participants of financial markets could offer more guidance. As producer prices in the US came in higher last week, the focus will continue to be on the Fed and Jerome Powell in particular.

– CA- consumer price index- The monthly consumer price index is expected to come in slightly elevated at 0.4%, which would be a rise from the previous release. Based on recent data from the US, which had also seen a rise in prices, we might also get a push in Canadian prices. This might help pushing the Canadian Dolar to the upside, which had recently seen a losing streak.

EURCAD, weekly chart

Based on the chart above the sentiment for the Loonie as the Canadian Dollar is called remains negative. The trend continuation to the upside seems feasible, whereas retracements might be used as entry opportunities. Any movements lower, yet above the psychological zone of 1.6000, could be used to get cheaply into the trend to the upside. Potential targets could be found at around the 1.6200 price level. Only a break of that zone might unleash stronger selling pressure. The CPI data will be released on Tuesday, 19^th August at 14:30 CET.

– NZ- Interest Rate Decision- It is expected that the RBNZ will cut interest rates by 25 basis points during their meeting this week. In general, a rate cut would cause a currency to weaken but since the move is being expected the negative momentum might remain limited. On the other hand, a closer look at current charting patterns is suggesting, that downside momentum might continue.

NZDUSD, monthly chart

In July the NZDUSD currency pair found a strong resistance and was selling off to lower levels. The bearish pressure indicates, that the negative sentiment might continue. A break of the important zone at 0.5870 could then unleash fresh selling pressure towards the 0.5555 price level. This would also be in- line with the general trend to the downside. The interest rate decision will follow on Wednesday, 20^th August at 04:00 CET.