The EURUSD currency pair withstood a turbulent time above the key 1.15 threshold but it was not able to rebound significantly from there, thwarted by solid data from the US and political concerns in Germany. This week will bring more cornerstone releases for this currency pair so there will be another opportunity. Bank of Canada decision will be crucial for the Canadian dollar.
US inflation (Thursday, 1:30pm GMT)
The Fed increased interest rates in June but markets are already focused on the September meeting. Will the Bank have enough courage to act? A lot will depend on inflation that could peak in June. The market consensus sees inflation at 2.9% y/y and although that’s partly driven by energy prices the core measure is seen moving up to 2.3% as well. The USD rally might not be over yet if the inflation is the concern for investors. Affected markets: US500, GOLD.
ECB minutes (Thursday, 12:30pm BST)
One of the reasons behind a lackluster euro was the ECB. The Bank heralded a termination of the QE program but at the same time pledged not to increase interest rates until at least September 2019. That was received as a dovish message but some members tried to water it down suggesting that actually waiting too long with a hike could be a mistake. Investors will look into minutes for clues regarding a timing of the first rate increase for the euro zone in years. Affected markets: EURUSD, DE30.
Bank of Canada decision (Wednesday, 3:00pm BST)
The Canadian dollar witnessed a changing fortunes over the past year as periods of euphoria were intersected with disappointment, be it domestic or US-related. The Canadian dollar has been under pressure lately as investors are concerned about trade relations with the US and therefore a decision to increase interest rates could give the CAD a long awaited boost. Affected markets: USDCAD, EURCAD
EURUSD continues its rebound from the 1.15 area. Will ECB minutes help the pair smash through resistance zone? Source: xStation5
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.