Today the focus is on IMF funds, British inflation, and Wall Street’s Delts fears.
The British Composite PMI for July will be released. Forecast: 57.7. If the result is higher than expected the GBP could receive positive pressure.
Assets to trade: GBP/USD, EUR/GBP, GBP/CHF
The US ADP Nonfarm Employment Change data for July will be reported. Forecast: 695K. If the data is lower than expected the USD may receive a negative push.
Assets to trade: USD/NOK, USD/MXN, USD/JPY
The US Crude Oil Inventories will be announced. Forecast: -2.900M. If the data is lower than expected oil prices could rise.
Assets to trade: Brent, Chevron, Exxon Mobil
Wall Street’s main indexes gave up early gains on Monday as worries about the Delta variant of the coronavirus and a slowing U.S. economy overshadowed optimism around more fiscal stimulus and a strong second-quarter earnings season. Affects S&P 500
The International Monetary Fund said on Monday its board of governors approved a $650 billion allocation of IMF Special Drawing Rights and said its largest-ever distribution of monetary reserves would become effective Aug. 23. Affects MXN
Oil prices rose on Tuesday on the expectation of a further decline in U.S. oil inventories, recouping some losses from the previous session due to lingering concern over rising cases of the Delta coronavirus variant. Affects Brent
High-frequency data indicate U.S. hiring slowed in July – not held steady as widely expected – with particular softness among states that ended federal unemployment benefits and areas where the COVID-19 Delta variant is raging. Affects USD
The British public’s expectations for inflation over the coming year jumped in July in response to recent rising prices, although longer-term expectations remained stable. Affects GBP
Industry in the US has had high demand across the board with employee shortages plaguing some that refuse to pay livable wages. However, after a summer of highs, price trade in a channel as rising cases dampens the excitement of an open economy.
The index is trading in a channel therefore volatility is bounded.
The pair has recently shown a Tweezer Top pattern, but prices are testing a support level.
The burger giant has shown a Three Black Crows pattern indicating a downtrend, prices could break below the support zone.