Correlation with SP500

Events, which should be paid attention to today:

15.30 Moscow time. USA: Inflation for July.


Today the market is waiting for an inflation release in the USA for July, where the consumer price index is expected. Against this background, the American stock market can demonstrate a small short -term growth of quotations, which is positive for this currency pair, since USDJPY historically correlates with the SP500 index. I will immediately make a reservation that I expect precisely a small growth of the stock market, Since now I see no reason for a fracture of the descending trend. The American economy is in a technical recession and this process can go into a full -scale crisis, since the United States was uneasy to live with an increase in the percentage rates of the Fed. Moreover, fresh data on labor productivity indicate a strong descending trend – performance is reduced, while wages are growing. This situation increases the cost of American products, which is detrimental to corporation income.

Trade recommendation: Buy 134.85/134.50 and Take Profit 135.35.