US Retail Sales Growth and Canada’s Inflation
Main Market Movers Recap
- Germany: The ZEW Economic Sentiment Index for July is due today and with expectations for a slight decline to 45 from the previous 47.5. The index is important as it reveals investor sentiment for the economy.
- Canada: June’s Inflation Rate YoY is expected at 2.9%, as previously expected. The stabilization of inflation may be affecting further policy actions by the Bank of Canada.
- US: Retail Sales MoM for June are expected to show a modest increase of 0.1%, matching forecasts. This data is essential for gauging consumer spending.
Major Currency Pairs
Live Rate [exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”EUR” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”USD”]
- EUR/USD: The single currency is giving off both positive and negative signals against the USD ahead of the ZEW Economic Sentiment Index later today. Recent statistics kept the pair within mixed market momentum while traders were keeping vigil ahead of today’s announcement.
Live Rate [exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”GBP” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”USD”]
- GBP/USD: The British pound remains close to its 2024 highs against the USD. However, it is above all overextended and looks forward to needing a breather. Strong UK GDP figures have supported the Pound but future data will be key for further direction.
Live Rate [exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”USD” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”JPY”]
- USD/JPY: The yen has had mixed performance with speculations of intervention by Japanese officials. Weaker US inflation drove the pair lower, the latter of which was recently characterized by a stronger Yen (DailyFX).
Commodities and Cross Rates:
- Oil: US crude prices remain currently bearish. Recent news about the Storm Beryl sparing some Texas infrastructure had eased some supply concerns, but market participants are still wary of further economic data releases.
- Gold: Gold prices are mixed but edging toward record highs on the back of hopes for a Fed rate cut in September. The precious metal continued to attract investors moving for safe haven positions amidst economic uncertainties.
Political and Economic News:
The UK government announced yesterday that the country would host the first meeting of the European Political Community, due on 18 July 2024 at Blenheim Palace. It is a large forum where around 50 European leaders will meet to discuss various common global challenges, such as continued support for Ukraine and ceasing immigration. That is according to Prime Minister Rishi Sunak, who reckons this forum is needed to cement cooperation all over Europe. (GOV.UK).
Besides, the UK is being haunted by rising poverty as the latest figures indicate that absolute poverty has increased for two consecutive years. The government is extending the Household Support Fund to offer relief to struggling households amidst persistent economic pressures. (The Independent).