Euro gloomy economic outlook
Sterling is looking for clear direction, trading slightly down at 1.2660 handle against the US Dollar and 1.1120 against the Euro.
UK and Brexit headlines and noises continue to drive sentiment though the market remains cautious ahead of month end closing. GBP/USD remains vulnerable to a no-deal scenario.
The Dollar Index consolidated near a four-day high as the greenback continues to firm up against low-yielding currencies. Market sentiment is cautiously switching to risk-on, on the back of reports that the US and China are close to announcing trade talks are back on track.
Yesterday, the GDP report card was released by the Bureau of Economic Analysis and showed the economy expanded by 3.1% in Q1 of this year, matching the market consensus. The readings, though advise caution with personal consumption expenditure (PCE) revised lower. The currency market is expected to consolidate around current levels with the G20 meeting as the centre of attraction.
The Euro looks to have started off today around the 1.1370s, albeit trading within a range between 1.1350 and 1.1400. Everytime price has touched the upper level, sellers have proved to strong and price has fallen straight back down. Sentiment in the Euro remains low, with a gloomy economic outlook on the horizon and with no major releases today. We’ll likely see the Euro continue to be range bound.
24h EUR G20 Meeting 07:00 CHF KOF Leading Indicator (Jun) 07:30 EUR ECB's Lautenschläger speech 08:30 GBP Gross Domestic Product (YoY) (Q1) 08:30 GBP Gross Domestic Product (QoQ) (Q1) 09:00 EUR Consumer Price Index (YoY) (Jun) 09:00 EUR Consumer Price Index - Core (YoY) (Jun) 12:30 USD Personal Income (MoM) (May) 12:30 USD Core Personal Consumption Expenditure - Price Index (MoM) (May) 12:30 USD Core Personal Consumption Expenditure - Price Index (YoY) (May) 12:30 USD Personal Spending (May) 12:30 CAD Gross Domestic Product (MoM) (Apr) 13:45 USD Chicago Purchasing Managers' Index (Jun) 14:00 USD Michigan Consumer Sentiment Index (Jun) 14:30 CAD Bank of Canada Business Outlook Survey 19:20 USD Fed's Daly speech