Today the focus is on the BoE’s supports, US trade deficit, and German industrial orders.
The US Nonfarm Payrolls for July will be released. Forecast: 870K. If the results are lower than expected the USD could receive negative pressure.
Assets to trade: EUR/USD, USD/NOK, USD/MXN
The Canadian Employment Change data for July will be reported. Forecast: 177.5K. If the data is higher than predicted the CAD could provide positive pressure.
Assets to trade: USD/CAD, CAD/JPY, CAD/EUR
The Bank of England set out its plans for how it would start to ease the British economy off the huge levels of support it has provided during the pandemic crisis, but it kept its stimulus running at full speed for now despite a jump in inflation. Affects GBP
German industrial orders rose more than twice as much as expected in June, driven by bookings from domestic clients for large manufacturing products, but weaker turnover suggested that supply bottlenecks continued to hold back production. Affects DAX
The U.S. trade deficit surged to a record high in June as efforts by businesses to rebuild inventories to meet robust consumer spending drew in more imports. Affects USD
The dollar held gains against a basket of currencies on Thursday after hawkish comments from the U.S. Federal Reserve led markets to move forward the likely timing of a policy tightening. Affects USD
Oil prices rose towards $71 a barrel on Thursday on rising Middle East tensions, while fresh movement restrictions imposed by countries to counter a surge in COVID-19 cases threatened the demand recovery. Affects Brent
The German economy continues to grow, however, supply chain concerns could put a damper on the current momentum.
The index is approaching previous highs but has to fight through its resistance level.
The index has shown Three White Knights after a Bullish Engulfing showing the uptrend has strength.
The pair is trading within a channel but could ride the slight uptrend past the resistance level.