Today the focus is on USD pressures, Euro bloc inflation, and the rise in oil.
The German Unemployment Change for May will be released. Forecast: -9K. A higher than expected reading could put negative pressure on the EUR.
Assets to trade: EUR/NZD, EUR/USD, EUR/CAD
The British Manufacturing PMI for May will be published. Forecast: 66.1. If the data is lower than expected, the GBP could receive negative pressure.
Assets to trade: GBP/CHF, GBP/JPY, GBP/NZD
The US ISM Manufacturing PMI. Forecast: 60.7. If the data is lower than projected, the USD could receive negative pressure.
Assets to trade: USD/SGD, NZD/USD, USD/MXN
Oil prices firmed underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC+ meeting this week to see how producers will respond. Affects Brent
The dollar remains under pressure ahead of a slew of European and US data that will confirm whether the global economy is on a steady recovery path. Affects USD
The global economic outlook is improving as vaccine rollouts allow businesses to resume operations and as the United States pumps trillions of dollars into the world’s largest economy, the OECD (Organisation for Economic Cooperation and Development) said on Monday, nudging its global growth forecasts higher. Affects S&P 500
Inflation in the Euro bloc is approaching its 2% target – thanks to higher spending and base effects stemming from the 2020 oil price crash. Strong data could spark excitement or fear that a new era of inflation is dawning. Affects Euro
In April, US job growth unexpectedly slowed, possibly because of shortages of workers and raw materials which may slow recovery. Affects USD
As OPEC+ continues to manipulate markets and demand is expected to increase as the summer kicks off, vaccinations increase, and economies reopen, prices could continue to climb. However, Iranian oil could cause prices to slip if deals can be reached.
Prices are testing the resistance level around 70, and will likely reflect downward off of it.
Prices are trading within a channel and could bounce back up toward the resistance level.
Momentum has faded as the price approached an old resistance level, but prices could move higher after breaking down resistance.