European FX Outlook: Central bankers symposium in Sintra begins

What you need to know before markets open

• The world’s most important central bankers gather in Sintra, Portugal for the annual symposium organized by the ECB.
• With little-to-no macro news due on Monday, the sentiment and the central bankers' speeches are set to take over.

Monday’s market moving events

• Rightmove house price index rose 1.1% y/y in May. 
• Japan’s trade balance reached a deficit of ¥-296.8 billion in May.
• ECB President Mario Draghi delivers the opening remarks by the at the ECB Forum on Central Banking in Sintra, Portugal at 19:00 GMT.
• Federal Reserve Bank of New York President John Williams is expected to deliver closing remarks on at a conference on banking culture, hosted by the Federal Reserve Bank of New York at 21:00 GMT.

Major market movers

• The currency markets are stable after major mover in favor of the US Dollar last week.
• The monetary policy divergence between the US and Eurozone drives EUR lower while political uncertainty regarding Brexit weight on GBP.

Friday’s macro summary

• The Bank of Japan left the monetary policy unchanged in June with one Monetary Policy Committee member dissenting the decision.
• German wholesale prices rose 0.8% m/m in May while increasing 2.9% y/y.
• The Eurozone inflation confirmed the preliminary estimate of 1.9% y/y increase while core inflation rose 1.1% y/y.
• ECB's governing council member Ewald Nowotny said inflation is in line with ECB target and the Bank is beginning policy normalization without setting off taper tantrum in markets.
• The US Empire State manufacturing index rose to 25.0 in June, up from revised 21.3 in May.
• Canada’s manufacturing sales fell unexpectedly strongly by -1.3% m/m in April.
• The US industrial production fell -0.1% in May.
• The US Michigan consumer confidence surprised on the upside rising to 99.3 in June.