Today the focus is on Japan’s new budget, IMF’s inflation concerns, & the housing boom in the UK.
The US Initial Jobless Claims will be released. Forecast: 350K. If the results are lower than expected the USD could receive a positive push.
Assets to trade: USD/NOK, EUR/USD, USD/MXN
The US Crude Oil Inventories will be announced. Forecast: -3.925M. If the data are lower than expected oil prices could rise.
Assets to trade: Brent, Chevron, Exxon Mobil
Japan unveiled an annual budget framework on Wednesday for the next fiscal year aimed at boosting growth in areas targeted by Prime Minister Yoshihide Suga, with eyes on a post-pandemic era, finance ministry officials said. Affects JPY
History suggests Britain’s house price surge could threaten hopes of post-Brexit export-powered growth if finance minister Rishi Sunak uses the housing market to fuel the economy as his predecessors did. Affects GBP
The International Monetary Fund on Wednesday said further fiscal support in the United States could fuel inflationary pressures and warned that the risk of a sustained rise in prices could require raising interest rates earlier than expected. Affects USD
German Finance Minister Olaf Scholz said on Wednesday he does not expect hurdles in the way of moving ahead with a planned global tax reform meeting at the G20 in Venice this weekend. Affects Google
The eurozone economy will grow faster than previously thought both this year and next, the European Commission said on Wednesday, despite emerging concerns the fast-spreading Delta variant of the coronavirus could lead to new restrictions. Affects EUR
Britain and Canada are recovering at different rates as the UK continues to open in the face of rising Delta variant cases while Canada is slower to reopen fully. Vaccination rates in these countries are rounding as fewer people rush to get the jab, but the reopenings roll on with hopes of no more lockdowns.
The pair is trading within a channel with an upward trend.
Prices are testing the support zone represented by the pink lines. If it breaks below this zone the next pivot is at the lower red line.
Quotes are floating around the resistance level and could continue to test it.