The UK Leadership Race, Trade, Monetary Policy, Iran and U.S Stats in FocusA light economic calendar will leave the UK Parliament, the U.S – China trade war and monetary policy in focus ahead of U.S stats later today.
Earlier in the Day:
There were no material stats to provide direction through the Asian session as the markets prepare for a busy week ahead.
The lack of stats left the focus on the extended U.S – China trade war and events in the Gulf following last week’s attack on two oil tankers. With the FED also delivering its June policy decision and economic projections on Wednesday, Friday’s U.S retail sales figures could question how dovish the FED will be.
With U.S – Iran tensions now heightened, U.S President Trump may look to use the latest attacks as a reason to take military action against Iran, which has been accused of the attacks.
For the Majors,
At the time of writing, the Kiwi Dollar was up 0.25% to $0.6508. The Aussie Dollar saw a more modest gain of 0.10% to $0.6879. The Japanese Yen was down by just 0.03% to ¥108.59 against the U.S Dollar.
In the equity markets,
The Hang Seng led the way, rising by 0.66%, with the gains coming off the back of the HK Government decision to suspend the extradition bill.
Weak economic data from Friday weighed on the CSI300, which was down 0.22%. The ASX200 was down by just 0.01% ahead of the close, while the Nikkei was up by just 0.09%.
The Day Ahead:
For the EUR
It’s a relatively quiet day ahead for the EUR.
Eurozone 1st quarter wage growth figures due out later this morning will garner some attention.
With tensions in the Middle East on the rise and the U.S – China trade war bounding on, geopolitics will likely be the key driver on the day.
At the time of writing, the EUR was up by 0.06% to $1.1215.
For the Pound
It’s also a quiet day ahead.
There are no material stats due out of the UK to provide the Pound with direction.
A lack of stats will leave the markets to focus on tomorrow’s 2nd Tory Party leadership race ballot.
Boris Johnson remains favorite to take the top spot following last week’s ballot result.
At the time of writing, the Pound was up by 0.03 at $1.2593.
Across the Pond
While it’s a big week ahead for the Greenback, it’s a relatively quiet day ahead.
NY Empire State Manufacturing Index numbers for June will provide the Greenback with direction later this afternoon.
While we can expect the Dollar to respond to the numbers, chatter from the Oval Office will likely be the key driver on the day.
On top of the ongoing U.S – China trade war, there’s now talk of possible military action against Iran following last week’s attacks.
It remains to be seen, however, whether Trump will make a move? The Saudis have pushed for a response…
At the time of writing, the Dollar Spot Index was down by 0.06% to 97.509.
For the Loonie
Foreign security purchase figures due out later today are unlikely to have an impact on the Loonie.
Influence from the Middle East on crude oil prices could provide support, though any talk of military action would likely favor the Greenback.
Market sentiment towards the global economic outlook also continues to be negative for the Loonie.
The Loonie was up by 0.04% to C$1.3409, against the U.S Dollar, at the time of writing.