Today the focus is on US Corporate taxes, rising oil, and Greek stimulus.
The British Average Earnings Index + Bonuses for July will be released. Forecast: 8.2%. If the data is lower than predicted the GBP could see a negative push.
Assets to trade: GBP/USD, GBP/JPY, GBP/CAD
The US Core CPI (MoM) for August will be reported. Forecast: 0.3%. If the data is lower than expected the USD could receive a negative push.
Assets to trade: USD/MXN, USD/CHF, AUD/USD
Greece said on Monday it will pump more money into its economy to prop up businesses and households battered by the pandemic, as a stronger-than-expected growth forecast for the year gave it the fiscal leeway for a raft of relief measures. Affects EUR
The USD began a week full of big economic data on a firm footing, with investors wary of the Federal Reserve beginning its exit from super-supportive policy even as cases of the coronavirus surge. Affects USD
The German economy will pick up steam in the third quarter but business activity will cool again in the final three months of the year, the economy ministry said on Monday. Affects DAX
Oil rose on Monday, supported by concerns over shut output in the United States because of damage from Hurricane Ida, with analysts expecting prices to remain rangebound in a stable market over the coming months. Affects Brent
Leading Democrats in the US House of Representatives said on Monday that they are seeking to raise the nation’s tax rate on corporations to 26.5 percent, up from the current 21 percent. Affects S&P 500
Greece and other countries in the EU have high expectations for Q3 which has contributed to its climb against slightly weaker currencies like the CAD. Canada’s economy has fluctuated with the price of oil but has not been able to keep pace with the EUR.
The pair is climbing an upward support level. It is approaching the intersection of the support line and resistance line. Prices will likely break above the resistance level.
The US index is testing its support level forming a possible Tweezer Bottom, indicating a possible reversal.
EURO STOXX 50
The European index is trading in an upward trending slowly narrowing Pennant.