Today the focus is on Oil’s slip, international corporate taxes, and Asias bond market.
The US Core CPI (MoM) for June will be released. Forecast: 0.4%. If the data is lower than expected the USD could receive negative pressure.
Assets to trade: USD/MXN, USD/JPY, USD/NOK
U.S. Treasury Secretary Janet Yellen urged European Union countries on Monday to sign on to a global deal to revamp corporate taxation, keep fiscal support through 2022 and consider more spending in the face of COVID-19 uncertainty. Affects Google
Risk currencies hovered above their recent lows against the dollar and the yen on Monday, as fears about a slowdown in the global economic recovery appeared to have subsided for now. Affects USD
Oil prices slipped on Monday as concerns about slowing global growth outweighed the prospect of tightening supply after talks among key producers to raise output in coming months stalled Affects Brent
The Bank of Japan will consider buying green bonds as part of a joint effort among Asian central banks to promote the region’s bond market, said a source with knowledge of its thinking. Affects JPY
European stocks fell slightly on Monday as investors sold economically sensitive sectors on worries that the spread of new coronavirus variants was stalling a global economic recovery. Affects EURO STOXX 50
The Japanese economy has shored up against many currencies as the plans for the country’s budget surplus is accounted for in future plans. The British economy has been on a rollercoaster as the economy has reopened, but spikes of the Delta variant have slowed enthusiasm.
The pair has shown a set of Tweezer Bottoms, both uptrends were short-lived, and the downtrend remains dominant.
EURO STOXX 50
This index rode a downward trend below its support turned resistance level and prices have risen to test it.
The pair is trading within a channel but has shown a strong Three White Knights pattern, however, the momentum may not be strong enough to break the upper boundary.