German Business Confidence and Iran Put the EUR and USD in Focus

It’s a mixed start to the day as the markets look to gauge what’s next for Iran. Any retaliation to new sanctions will need to be looked out for…
Bob Mason
Currency exchange notice board

Earlier in the Day:

There were no material stats released through the Asian session this morning to provide the majors with direction.

Market reaction to softer economic indicators out of the U.S, concerns over rising tensions in the Middle East, and sentiment towards this week’s G20 Summit provided direction on the day.

For the Majors

At the time of writing, the Japanese Yen was down by 0.07% to ¥107.39 against the U.S Dollar.

The Aussie Dollar was up by 0.36% to $0.6951, while the Kiwi Dollar was up by 0.05% to $0.6592.

The Day Ahead:

For the EUR

It’s a relatively busy day ahead for the EUR.

Germany’s June IFO Business Climate Index and sub-indexes will provide the EUR with direction later this morning.

Following Germany’s private sector PMI numbers, optimism within the manufacturing sector improved, while service sector optimism slid. While forecasts are EUR negative, improved optimism in the manufacturing sector could limit any downside.

Outside of the stats, geopolitical risk will need to be factored in. In spite of rising tension between the U.S and Iran, Trump’s decision to hold back a military strike should support the EUR on the day.

At the time of writing, the EUR was up by 0.07% to $1.1377.

For the Pound

It’s a quiet day ahead, with no material stats due out of the UK.

With no material stats due out of the UK, the focus will remain on Parliament.

Will there be any fallout from Boris Johnson’s domestic woes? Expect the EU to continue to give their 10 cents worth in a bid to influence the outcome of the leadership race.

Few member states are likely to want Johnson to take the top spot, though an unwillingness to negotiate does suggest that a no deal Brexit is the only option should the Tories hold onto their very limited power.

At the time of writing, the Pound was up by 0.05% to $1.2744.

Across the Pond

It’s a quiet day for the Greenback.

There are no material stats due out of the U.S.

The Greenback has taken a hiding in recent days and barring the threat of military action against Iran, a lack of stats today will limit any upside.

Any positive chatter ahead of the Trump – Xi G20 Summit meet would be Dollar positive. It would be unusual, however, if past performance has anything to go by. The U.S President tends to favor threatening remarks ahead of any meetings.

At the time of writing, the Dollar Spot Index was down by 0.07% to 96.153.

For the Loonie

There are no material stats due out of Canada.

Market sentiment towards the U.S – Iran relations, or lack of, will likely be the key driver on the day.

It’s a busy week ahead for the Loonie, but there are also a number of possible curveballs for the markets to consider.

The Loonie was up by 0.20% to C$1.3196, against the U.S Dollar, at the time of writing.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.