Trade talks resume but for how long?
Sterling traded largely unchanged against the Euro on Friday, as markets remained on the sidelines ahead of the crunch trade talks between President Trump and President Xi.
Manufacturing PMI data is due for release today and is expected to show the pace of contraction in the activity accelerated further in June after reaching thirty-four months low in May.
The Dollar continues to gain this morning after the United States and China agreed on Saturday to restart trade talks as President Trump offered concessions on new tariffs and restrictions. Trump also stated that the US commerce dept would study over the next few days whether to take Huawei off the list of firms banned from buying components and technology from US companies without government approval.
The EUR/USD is currently dropping to the low 1.1300s on the back of the G20 weekend meeting and Trump and Xi agreeing a tariff truce.
On the docket today, unemployment in Germany is expected to hold flat after surging to 60k in May and a positive development may spark a positive reaction in the Euro, as it instills a positive outlook in the Euro area.
Data to watch:
24h USD OPEC Meeting
01:45 CNY Caixin Manufacturing PMI (Jun)
06:15 USD Fed’s Clarida speech
06:30 CHF Real Retail Sales (YoY) (May)
06:45 EUR ECB’s De Guindos speech
07:55 EUR Unemployment Rate s.a. (Jun)
07:55 EUR Unemployment Change (Jun)
07:55 EUR Markit Manufacturing PMI (Jun)
08:30 GBP Markit Manufacturing PMI (Jun)
09:00 EUR Unemployment Rate (May)
10:15 EUR ECB’s Lane speech
13:45USD Markit Manufacturing PMI (Jun)
14:00USD ISM Manufacturing PMI (Jun)
14:00 USD ISM Prices Paid (Jun)
22:00 NZD NZIER Business Confidence (QoQ) (Q2)
22:45 NZD Building Permits s.a. (MoM) (May)