Germany’s Ifo Index, US GDP Growth on Deck
High Impact Economic Data
Today’s economic calendar releases that could impact the markets:
- 09:00 AM (DE) July’s Ifo Business Climate Index The previous reading was 88.6, while the consensus and forecast are 88.9 and 89.
- 01:30 PM (US): Orders for Durable Goods for June. Previous reports revealed a 0.1% increase. The consensus and forecast are both at 0.3%.
- 01:30 PM (US): GDP Growth Rate QoQ Advance for Q2. The previous figure was 2%, the consensus being at 2.5%, and the forecast at 1.4%.
Major Currency Pairs
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EUR/USD: The euro remains firm near the 1.1100 level. Some support emerged from yesterday’s PMI readings, though investors are likely focused on today’s Ifo Business Climate release, which could impact the pair in case of deviation from expectations.
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GBP/USD: The pound trades near 1.2900. UK inflation data have eased slightly of late and helped take some pressure off the Bank of England from more aggressive rate hikes.
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USD/JPY: The dollar is slightly weaker against the yen, trading around 140.50. Lower U.S. Treasury yields have diminished the dollar’s appeal, while the Bank of Japan’s comments on maintaining ultra-loose monetary policy have capped the yen’s gains.
Commodity Prices
- Oil: Crude oil price remains volatile. Brent crude is trading at around $80/barrel, while WTI is seen to be near $77. Conflicting indicators of global demand and supply, combined with geopolitical tensions, drive price movements.
- Gold: The price of gold is hovering near $1,950 an ounce. Safe-haven demand against economic uncertainties and geopolitical risks underpin gold prices. The lower U.S. Treasury yields also make gold a more viable investment option.
Political and Economic News:
U.S.-China tensions: The tensions between the United States and China, with regard to both restrictive trade measures and geopolitics, are on an upward trend and hit hard on global trade dynamics and market stability.
Eastern Europe Conflict: Ongoing conflict in Eastern Europe remains one of the principal factors influencing energy prices and broader market sentiment.