The U.S. Dollar is establishing favorable ranges with the exception of the Pound whose swings continue as a new Prime Minister comes into office.
Overview
Ahead of the European Central Bank meeting tomorrow and the Gross Domestic Product figure for Q2 on Friday, there is not much threading the needle. We shall see if the American expansion continues with Purchasing Managers Index Manufacturing and Services numbers for July expected to look better than June. Thus far, quiet buck for Hump Day.
Stock indexes fell as a result of an antitrust probe launched by the U.S. government into big technology companies, but perhaps they will get reprieve from the announcement of an official U.S. trip for Robert Lighthizer and others to work in China with their negotiating counterparts. The buck will likely have more action its way tomorrow as Durable Goods Orders and other expenditure gauges are released.
What to Watch Today…
- Markit PMI Composite 9:45AM
- New Home Sales 10AM
Complete Economic Calendar can be found here.
EUR
The Euro is certainly on weakening mode as hard data showed that Germany is truly struggling to expand. Markit PMIs in Germany and France came in under expectations, especially when it comes to German Manufacturing, which contracted more than thought.
Manufacturing has failed to show any sign of expansion at all thus far in 2019 for the EU’s largest economy that employs the most. This news comes ahead of an ECB meeting that will likely point at the need for officials to figure out ways to propel activity.
CAD
The Canadian dollar remains near its best levels of the year, but it is starting to get away from them after falling 0.8% this month. The surge in June of 3.2% appreciation was based on better economic data that suggested the Bank of Canada should hold back from easing.
Oil prices rising because of sanctions and production reductions also helped and may keep being a factor that allows “Loonie” staying afloat. No news on USMCA yet as China takes priority when it comes to fixing all that ails free trade.
