Previous Day's Market Highlights
The euro came under pressure on reports of Trump’s commitment to auto tariffs. However, the euro later gained on reports of the introduction of a bill in the Senate to delay the auto tariffs and the Trump-Juncker agreement to work towards “zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods”. This led to a risk-on sentiment across markets, seeing gains in equities. The S&P 500 closed at its highest levels since the end of January. The dollar was softer around the announcement.
Overnight, sterling-dollar tested 1.32 to trade at its highest levels since 17 July. Euro-dollar regained 1.17. Sterling-euro continued to trade in the 1.12-1.13 band.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The ECB is expected to keep policy unchanged when it announces its latest decision this afternoon (12:45). In June, the Bank announced that it would wind down asset purchases by the end of the year and keep interest rates on hold until at least next summer. As a result, investors will mainly be looking for the Bank’s updated inflation outlook and any signals that the timeline for a future rate hike could shift either forward or back. If little new is gleaned from today’s comments, the euro impact may be limited.
The dollar could strengthen on a gain in Durable Goods Orders (13:30). Tomorrow, the US releases the first estimate of Q2 GDP, where an expected acceleration could also prove dollar supportive.
Today's Economic Calendar
|12:45||EUR||ECB Deposit Rate Decision||-0.4%||-0.4%|
|12:45||EUR||ECB Interest Rate Decision||0%||0%|
|13:30||EUR||ECB Press Conference|
|13:30||USD||Initial Jobless Claims (16 Jul)||215K||207K|
|13:30||USD||Durable Goods Order (Jun)||3.0%||-0.6%|
|13:30||USD||Core Durable Goods Order (Jul)||0.5%||-0.3%|