The Pound slumped against both the Euro and Dollar, early in yesterday's session after the release of disappointing manufacturing PMI data. With markets forecasting a figure of 49.5, the actual figure came in at 48. Making it the lowest reading in over six years. Today we've started off around the low 1.11 against the Euro and the mid 1.25 against the Dollar.
On a separate note, Boris Johnson, seen as the front-runner for the Prime Minister's post, is considering a motion to cut short or condense the British cabinet my merging/removing various departments within the government if he takes office.
Market participants will be closely following today’s FOMC meeting, whereby the new ‘dot-plots’ are expected to show no rate hike forecasts for both this and next year. The Federal Reserve chair Powell is also predicted to portray and reinforce a dovish outlook for the US economy, emphasising the goal of ‘sustaining expansion’.
The Euro is aiming narrowly lower as the White House proposed pushing an additional $4billion in tariffs against the European Union, shortly after agreeing on a trade truce with China at the G20- meeting over the weekend.
After its biggest drop in a single day, against the dollar since March. The pair could be looking at further losses to near term support around the low 1.27s or 1.25s.
Data to watch:
04:30 AUD RBA Rate Statement (Jul)
04:30 AUD RBA Interest Rate Decision
06:00 EUR Retail Sales (MoM) (May)
08:30 GBP Markit Construction PMI (Jun)
09:30 AUD RBA's Governor Lowe speech
10:35 USD Fed's Williams speech
13:30 CAD Markit Manufacturing PMI (Jun)
n/a NZD GDT Price Index
14:05 GBP BoE's Governor Carney speech
Posted in Daily Market News on Jul 2 2019