FX Brief: Tight Ranges Ahead Of European And US Data

Matt Simpson, CFTe, MSTA CityIndex

NZD CPI rose in line with expectations to alleviate a little pressure for RBNZ to ease in August. NZD remains the firmest major this session and over the past month. NZ TWI has moved up to a 3-month high.
AUD and CHF are currently the weakest majors. Although AUD/USD did briefly move to an 8-day high in quiet trade.
- Equities and index futures traded cautiously higher ahead of earnings and US data.
Brexit concerns continued to weigh on GBP and EUR, with investors nervous that Boris Johnson winning the leadership contest in just a couple of weeks.

Up next:

UK employment data puts GBP crosses into focus, at a time when traders are adjusting to the potential for BOE to ease in-light of recent comments (therefor likely sensitive to any weakness in the data).
Germany’s ZEW economic sentiment, which is seen as a leading indicator for the Eurozone’s broader ESI, has turned markedly lower at -21.1%, which could keep EUR crosses under pressure if these cracks continue to widen.
US retail sales, industrial production, manufacturing production make the bulk of data in the US session to make the major in focus for traders.

Author

Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

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