Mario Blascak, PhD
Independent Analyst
What you need to know before markets open
In Europe
- The ECB Governing Council member Ewald Nowotny said that ECB can afford to have Eurozone inflation above 2% for a month or so because of rising oil prices and that negative interest rates cannot be a permanent feature of monetary policy. Longer we live with negative interest rates, the more we have to be careful to avoid asset bubbles from looser lending, Nowotny said.
- ECB’s President Mario Draghi was upbeat on the economy in the European Parliament saying the underlying economic fundamentals remain solid while downside risks to the outlook mainly relate to the threat of increased protectionism. Draghi said ECB’s confidence in the inflation path is also rising.
- German ZEW index of investors’ sentiment is expected to fall further to -18.6 in July after reaching the cyclical peak of 20.4 in January.
In the UK
- The UK government has found an immediate replacement for the resigning ministers with Dominic Raab replacing the outgoing Brexit minister David Davis.
- The UK foreign secretary Boris Johnson resigned on Monday.
- The UK Prime Minister Theresa May tells MPs Brexit White Paper will be published "next week". Not this Thursday, as had been planned.
- The UK manufacturing output is set to rise 0.7% m/m in May after falling -1.4% in April while the industrial production is expected to rise 0.5% m/m in May after falling -0.8% in the previous month.
- The UK Office for the National Statistics is expected to deliver the first estimates of the monthly GDP in May that is seen rising 0.3% m/m. For details read my Preview here.
In China
- China’s consumer prices rose 1.9% y/y while producer’s prices accelerated to 4.7% y/y in June.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.