The theme among major currencies recently has been a stronger yen, with USD/JPY continuing to drop. But the dollar itself is also seen advancing against the rest of the major currencies bloc. In particular, the antipodeans have been softer this week amid ongoing weakness with the Chinese yuan as well. Here’s a snapshot of things so far today:
The ranges for the day are being stretched as we look to European trading and that is keeping things interesting to start the session.
In the equities space, we’re seeing a further retreat in risk sentiment as well. S&P 500 futures are down 0.6% with Nasdaq futures down 1.0% currently. That owes much to a miss on earnings from Tesla and even with a beat for Alphabet earnings, advertising sales were on the softer side and costs were higher – a potential warning for the coming quarters. As such, tech shares are the ones pulled lower for the most part currently.
Looking to the session ahead, we’ll have PMI data from the euro area and UK to mix things up. And that will bring in the euro and pound to the table, as well as some indirect spillovers to risk and yields.
0600 GMT – Germany August GfK consumer sentiment0715 GMT – France July flash manufacturing, services, composite PMI0730 GMT – Germany July flash manufacturing, services, composite PMI0800 GMT – Eurozone July flash manufacturing, services, composite PMI0830 GMT – UK July flash manufacturing, services, composite PMI1100 GMT – US MBA mortgage applications w.e. 19 July
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
This article was written by Justin Low at www.forexlive.com.
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