FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
40,976,014Confirmed
1,128,016Deaths
30,526,869Recovered
Fetching Location Data…
Advertisement
Advertisement
Bob Mason
Euros Notes 2

Earlier in the Day:

It was a particularly quiet start to the week, with no material stats released through the Asian session, leaving the markets to consider the week ahead, with the RBA and RBNZ due to deliver interest rate decisions and guidance on policy.

Disappointing nonfarm payroll and service sector PMI numbers provided some support to the Aussie Dollar and Kiwi Dollar early on, with the Kiwi Dollar up 0.10% to $0.6751, while the Aussie Dollar was flat at $0.7404.

Advertisement

Both may come under pressure later in the day however, with the markets likely to consider the respective central banks to maintain relatively dovish stances on policy, neither expected to be looking to lift rates at any time this year, the RBNZ having also suggested a possible need for further easing.

For the Japanese Yen, a pickup in risk appetite through the early part of the day saw the Yen fall by 0.09% to ¥111.35 at the time of writing, with the Dollar finding some early support.

In the equity markets, the majors tracked the U.S markets from Friday into positive territory, the Hang Seng leading the way early on, rising by 1.29%, with both the CSI300 and ASX200 up 0.73% at the time of writing, while the Nikkei was up 0.33% through the early part of the day.

Advertisement

The Day Ahead:

For the EUR, it’s particularly quiet week ahead, with key stats scheduled for release this morning being limited to June factory order numbers out of Germany that are forecasted to be EUR negative.

Softer manufacturing PMI numbers released last week and a pullback in factory orders at the end of the 2nd quarter would certainly be of concern.

At the time of writing, the EUR was down 0.07% to $1.1561, with today’s factor order numbers expected to weigh.

For the Pound, there are no material stats scheduled for release to provide direction for the Pound, with the markets having to look ahead to NIESR GDP estimate numbers on Thursday and 2nd quarter GDP and manufacturing production figures on Friday for direction.

Carney’s Thursday press conference and sentiment towards Brexit continue to be negatives for the Pound at the start of the week, with this week’s stats needing to impress to stop the Pound from taking a bigger hit, Brexit negotiations not scheduled to resume until next week.

At the time of writing, the Pound was down 0.05% to $1.2995.

Across the Pond, there are no material stats scheduled for release through the day, leaving the Dollar in the hands of Trump and chatter on trade, North Korea and possibly Iran as sanctions become effective today.

Following a pullback in the Dollar on Friday, the Dollar should find some support, the weaker nonfarm payroll numbers coming off the back of a solid June figure, with a marked slowdown in the pace of growth in the services sector likely to be accepted by the markets as a one off, the stats unlikely to materially influence the FED’s outlook on policy or the U.S economy.

At the time of writing, the Dollar Spot Index was up 0.06% to 95.219.

For the Loonie, it’s a public holiday in Canada that will see volumes on the lighter side and, with no material stats scheduled for release, moves will likely come from any chatter on NAFTA.

At the time of writing, the Loonie was down 0.03% to C$1.2995 against the U.S Dollar, with the markets needing to wait until tomorrow’s July Ivey PMI numbers direction, any progress on NAFTA and further positive stats in the week ahead supportive of a more hawkish BoC and a near-term rate hike.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US