Forex Today: GBP tracks Oil recovery, EZ PMIs, CAD CPI & US data eyed
|Forex today witnessed yet another dull and sedated Asian session, although risk reset emerged the underlying theme amid a minor recovery staged by oil prices. Higher-yielding currencies such as the AUD, NZD and GBP cheered better risk sentiment, while Theresa’s May post-Brexit EU citizens’ rights offer provided extra legs to the risk recovery. Meanwhile, the USD/JPY pair traded modestly flat, in a wait-and-see mode, in absence of fresh fundamental drivers in Asia, except for the downbeat Japanese manufacturing PMI release.
Later today, the EUR calendar offers economic data of note for the first time this week, with a raft of flash manufacturing and services PMI reports due to be released from across the Euro area. Meanwhile, the UK docket continues to remain data-dry.
Moving on, we have an eventful NA session, as Canada is likely to publish the crucial inflation figures, which may add to the rate hike expectations, especially after yesterday’s solid retail sales data. Meanwhile, the US flash manufacturing and services PMI reports will be also published, followed by new home sales and FOMC member Powell’s speech.
Main topics in Asia
Brexit: Theresa May to offer “UK settled” status to EU citizens
"No-one will face a cliff edge," Theresa May said at a Brussels summit and added that the EU citizens legally residing in the UK would have the same rights as British citizens after Brexit.
Japan flash manufacturing PMI drops to 7-month lows in June
Reuters out with more insights on the Japanese manufacturing PMI numbers released for June earlier today.
Germany’s Merkel: UK offer on EU citizens' rights was "good start", but…
Reuters reports comments that crossed the wires from the German Chancellor Angela Merkel last hours, after Theresa May outlined her plans to offer “UK settled” status to EU citizens at the Brussels Summit.
Official: Arab states send Qatar 13 demands to end crisis - RTRS
Reuters quoted an official of one of the four Arab states that have boycotted Qatar over alleged links to terrorism, citing that Qatar has been sent a list of 13 demands, in an effort end the political rift.
Key Focus ahead
Eurozone: Expect slightly better PMI prints today - TDS
Analysts at TDS are looking for slightly better prints for today’s Eurozone PMI estimates for June.
US data reviewed and previewed for tomorrow - Nomura
Analysts at Nomura offered a review of today's US data and a preview of the remaining key data release for the US.
Will GBP/USD bulls be able to defend the weekly 50-MA support of 1.2660?
Oil recovery may lead to risk-reset in the markets and yield a steeper treasury yield curve and a strong US dollar. Thus, the GBP / USD pair may end the week below the 50-week MA if the oil recovery gathers steam.
Is Brent oil poised for technical recovery?
The technical recovery in oil would falter if Baker Hughes reports a big jump in the oil rigs.
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