Today the focus is on Eurozone business activity, Oil output, & Japan’s excess budget
The British Construction PMI for June will be released. Forecast: 63.8. If the data is lower than predicted, the GBP could receive negative pressure.
Assets to trade: GBP/USD, EUR/GBP, GBP/CAD
The German ZEW Economic Sentiment for July will be published. Forecast: 75.2. If the results are lower than expected the EUR could slip.
Assets to trade: EUR/USD, EUR/CAD, EUR/NZD
The US ISM Non-Manufacturing PMI for June will be reported. Forecast: 63.5. If the data are higher than expected the USD could receive a positive push.
Assets to trade: USD/NOK, USD/MXN, USD/JPY
Japan has logged a record 4.5 trillion yen ($40 billion) in leftover money from the previous year’s budget due to greater than expected tax revenue, the fiscal law stipulates that half must be used to repay debt, while the rest can be spent for other purposes, namely a supplementary budget for the current fiscal year. Affects JPY
Eurozone businesses expanded activity at the fastest rate in 15 years in June as the easing of more coronavirus restrictions brought life back to the bloc’s dominant service industry, a survey showed on Monday. Affects EUR
Japan will have more clarity on what a digital yen would look like late next year, a lawmaker overseeing the ruling party’s digital currency plan said, potentially sparking a turf war between traditional lenders and online platform operators. Affects Bitcoin
OPEC+ ministers will look to salvage their oil output talks on Monday after clashing last week when the United Arab Emirates balked at a proposed eight-month extension to output curbs. Affects Brent
Investor morale in the eurozone rose for the fifth month in a row in July, its highest level since February 2018, lifted by reopening restaurants and retailers as well as tourism as coronavirus cases fall, a survey showed on Monday. Affects EUR
The Japanese economy has not roared back the way the Eurozone has, however, the recent discovery of leftover funds could inject positivity into Japan’s rally. The EU has continued to open and relieve restrictions, though they are not out of the woods yet as recovery is thought to be fragile.
The pair is trading in a Pennant and will breakout soon.
This index is trading along its support line, as the resistance line is putting downward pressure, prices will break one line or the other soon.
The German index is trading within a channel and will likely continue to do so.