While the global economic recovery appears to be moving along at a fairly rapid pace, with many countries ending the final stages of covid-19 lockdowns, macroeconomic data is becoming increasingly important to monitor. This is in part due to the fact that for quite some time, indices and stock prices appear to no longer reflect the actual performance of the overall economy after the unprecedented interventions by central banks. While today’s US retail sale figures showed a drop of 1.3% compared to the expected -0,6%, it is interesting to note that this comes after the above expectation inflation figures which indicated an increasing pressure on the US consumer who has also exhausted the latest stimulus cheque and is now contending with a segmented economy which is still dealing with significant turmoil, both politically and economically. Focus once again shifts to the FOMC, whose meeting this week will be closely followed after constant downplaying of inflation fears, which it called “transitory”. While other central banks, including the ECB, have decided to remain cautious, it remains to be seen if the FED will finally react to the signs coming from consumers by adjusting it’s policy, or if it will once again remain on the sidelines.

UK-Australia trade deal reached as some concerns arise

The topic of post-Brexit trade deals was a long discussed one leading up to the negotiations deadline, and while the UK has signed several trade deals over the last year, they have been rollovers of ones the UK already had as part of the EU. Boris Johnson’s government has completed its first new trade deal, and while it appears to aim to allow free trade and exchange of goods and services with one of the UK’s closest allies, several skeptics are unsure about the deal due to the lack of detail and oversight. Some of the concerns raised include uncertainty for British farmers, along with unclear standards regarding food safety and animal welfare which would require extensive consideration to amend. On the other hand, the deal could potentially allow the UK access into the broader Asian market through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which would open many possibilities for UK consumers and businesses. As with most deals, the details are going to be the key factors to keep an eye on as the UK continues to set itself up in a post brexit scenario.

X-Trade Brokers Dom Maklerski S.A. does not take responsibility for investment decisions made under the influence of the information published on this website. None of the published information can be treated as a recommendation, disposition, promise, or guarantee that the investor will achieve a profit or will minimize risk using the information published on this website. Transactions including investment instruments, especially derivatives using leverage, are in its nature speculative and can provide both profits and losses that can exceed the initial deposit engaged by the investor.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD pressured amid downbeat data, covid concerns

EUR/USD is trading well below 1.18 and down on the day. Markit's US Services PMI missed estimates with 59.8, souring sentiment. Worries about covid provide some support to the safe-haven dollar. The ECB's dovish decision pressures the euro.

EUR/USD News

GBP/USD hovers around 1.3750 amid after mixed UK data

GBP/USD is holding above 1.3750, clinging to this level after UK Retail Sales beat estimates but Markit's PMIs missed on both sides of the pond. Covid headlines are eyed.

GBP/USD News

XAU/USD eyes a sustained move below key $1799 support

Gold price is trading on the wrong footing this Friday, eyeing the first weekly loss in five weeks, as the US dollar remains at the highest levels in three months.

Gold News

Cardano might pull back to $1.11 before heading higher

Cardano price pierced the July 18 swing high at $1.21, indicating a resurgence of buyers. Although ADA might try to slice through $1.25, a retracement will likely evolve before tagging $1.37.

Read more

US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Two steps down, one step up – that has been the playbook for risk-averse markets. What happens when traders have little time to act ahead of the weekend and the last word belongs to a downbeat figure? 

Read more

Majors

Cryptocurrencies

Signatures