Although, we do not have many noteworthy macroeconomic releases scheduled for Monday, things are going to change later in the week. When it comes to the data for today there were two quite interesting readings which could be crucial for the EURUSD just ahead of the ECB’s meeting which takes place on Thursday.
The main event during the Asian session was a release of Chinese GDP for Q1 which proved to beat a forecast in a yearly basis. Growth in the past week was at 6.9% yoy, while a projection had suggested a 6.8% yoy rise. In turn, when it comes to a quarterly basis an increase by 1.7% was in line with anticipations. The China’s Statistics Department said that the economy continued steady, improving momentum in a first half of this year. Moreover, growth in H1 is to lay a solid foundation for achieving the full-year GDP objective.
Despite decisively reassuring macroeconomic data from the Chinese economy along with gains registered on Wall Street on Friday, European investors have remained quite cautious possibly awaiting the ECB’s meeting which is scheduled on Thursday. That event could exert a downward pressure on the euro as risks appear to be tilted to the downside. Looking at the technical analysis on the DE30 one could spot the price is continuously holding onto a resistance line at 12640 points. As for now, swings of the price seem to be closed between the above-mentioned resistance and a crossing of a long-term trend line along with a downward limit a channel. Until one of those level is broken, there should be no a greater volatility.
We just mentioned an issue pertaining to a massive risk to Bitcoin on Friday, today we want to reveal more details on this aspect alluding to Bitcoin’s price. First and foremost, let us pin down what happens on July 31st. The date means a deadline for people who maintain Bitcoin to agree to implement a major software upgrade being aimed at improving capacity on the increasingly clogged network.
As for currencies, dollar is slightly higher on the day, but the move is only a minor correction of the Friday’s tumble. What’s more, things could look even worse in upcoming weeks if the Trump’s administration fails to deliver a fiscal stimulus. A lot of people came into this year expecting a big stimulus from Trumponomics, potentially a big tax cut, infrastructure. However, as for now none of them was introduced. In upcoming hours it’s worth looking at NY Empire State Manufacturing Index.
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