Markets eye Powell speech

July 9, 2019

A fair amount of information is scheduled for release today as we look to speeches by central bankers.

Currencies remained rather flat overnight, taking a breather from a stronger US dollar. The EURUSD began the week at $1.12210 and lifted in mid-session trading to a high of $1.12338. It gave up those highs during the back half of the day as it slid to a low of $1.12060. It has come off those lows and is currently trading at $1.12141. It was a similar story for the GBPUSD after starting the week at $1.25247. The pair traded in a tight range early, bumping up to a high of $1.25390. The pound dropped to a low of $1.24986 a few hours later and is currently trading at $1.25140.

The Dow weakened overnight, giving up the late gains it made on Friday. The index opened the week at 26,904.81 and bounced up to a high of 26,941.98 in the first hour of trade. The decline started shortly afterwards as the Dow struggles to maintain itself above 27,000. It hit a low of 26,760.52 late in the day and is currently trading at 26,783.76. The Dax struggled to start the week as the Greek election and Deutsche Bank weighed on the index. It opened at 12,518.97, almost 60 points lower than its Friday close, and looked shaky early. The German index then climbed to a high of 12,585.19 before things went south again. The Dax hit a low of 12,480.73 before closing at 12,504.90.

The day ahead is a typical Tuesday, with not much in the way of data volume. Markets will turn their attention to a speech by Fed Chair Jerome Powell. Speeches given by the heads of central banks always attract extra attention as what they say can have huge bearings on the market. Other FOMC Members are also speaking throughout various stages of the day.

Data published today includes:

Australia – NAB Business Confidence

Japan – Prelim Machine Tool Orders

Canada – Housing Starts, Building Permits

Europe – Italian Retail Sales, Swiss Unemployment Rate

US – JOLTS Job Openings, IBD/TIPP Economic Optimism, NFIB Small Business Index, FOMC Members James Bullard & Randal Quarles speak



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