US dominates data this week

July 8, 2019

A swathe of data is scheduled for publication this week, with the US once again stealing the headlines.

The US dollar gained in strength on Friday, pushing paired currencies down going into the weekend. The EURUSD opened the day at $1.12827 and ticked up to a high of $1.12871 early in the day. The euro began to decline shortly afterwards, sliding slowly in mid-session trading before accelerating late in the day. The pair hit a low of $1.12060 before bouncing back to its current level of $1.12262. The GBPUSD followed a similar path as the euro after opening the day at $1.25756. The pound traded rather flat early, peaking at $1.25869 heading into mid-session trading. The pound fell shortly after that high, tumbling to a low of $1.24800 late in the day. It came off those lows and is currently trading at $1.25239.

The Dow looked set for a tough session, after much-better-than-expected jobs numbers put interest rate cuts on the back burner. The index started the day at 26,994.32 and bumped up to a high of 27,016.82 early in the day. The Dow fell over the next several hours, culminating in a sharp fall to lows of 26,740.96. It bounced off those lows late in the day and is currently trading at 26,877.01. The Dax ended Friday in negative territory, being weighed down by a falling Dow. The German index began the day at 12,624.60 and ticked up to a high of 12,640.52 early in the session. The Dax fell soon after however, as it slid to lows of 12,516.26. It came off those lows and closed at 12,575.14.

The week ahead sees the release of a host of data that is sure to cause some movements in the market. More immediate however, is the Dax. We could be set for a tumultuous open for the German index, due to a couple of factors. Greece held a snap general election over the weekend in which the sitting Prime Minister was defeated. This could cause more uncertainty in the Eurozone as the country grapples with austerity and their flailing economy. News also broke over the weekend that one of Europe’s largest banks, Deutsche Bank, has announced that it will cut 18,000 jobs over the next few years as it restructures its operations

Data published today and the most important this week includes:

Today – Australian ANZ Jobs Ads, Japan Economy Watchers Sentiment, German Industrial Production & Trade Balance, European Sentix Investor Confidence

Tuesday – China New Loans, Fed Chair Jerome Powell speaks

Wednesday – UK GDP & Manufacturing Production

Thursday – FOMC Meeting Minutes, BoC Overnight Rate, Rate Statement, Monetary Policy Report and Press Conference, Fed Chair Jerome Powell Testifies

Friday – US CPI & Core CPI, US PPI, China Trade Balance, Fed Chair Jerome Powell Testifies


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