- USD braced for weaker employment data
- Canadian trade and employment data awaited
By David Johnson
The Euro had a better day yesterday; strengthening against the USD, the Pound and others. That was helped by a strong rebound (2.6% rise) in German factory orders.
The Euro’s gains against the Pound were helped this morning by a slowdown in house prices, as reported by Halifax, the Bank of Scotland. There is a notable lack of UK data today, so it wouldn’t be a surprise to see Sterling slide a little through the day.
The Euro’s gains against the USD were also helped by a softer sentiment in the US Federal Reserve’s meeting minutes. They did raise the base rate by 25 basis points in their June meeting but there are fears within the Federal Reserve (Fed) over the impact on US President Trump’s aggressive trade policies. This afternoon is a busy one for US data though. Import and export data will add to the employment report to keep US traders on their toes. The forecasts are slightly softer than previous months and that could allow the USD to weaken a little before the weekend, so bear that in mind.
This afternoon also brings the Canadian trade balance and employment data but the forecasts are more mixed for this data than the US data. Unemployment is expected to have risen but the trade deficit has probably suffered in the eye of the North American Free Trade Agreement (NAFTA) debacle.
And then it is the weekend and a certain football match will occupy the thoughts of many. As will the Silverstone Grand Prix…oh and Wimbledon and probably a heap of other sporting events. As long as there is a Pimms tent, I’m up for any of them…..except the football. All that rolling around on the floor trying to look hurt just bugs the heck out of me.