#EUR - Bullish Mode
Recap:
1️⃣ Private sector activity continued to see a pickup in activity in July. The Eurozone’s Services PMI jumped from 48.3 to 55.1, with the Manufacturing PMI rising from 47.4 to 51.1.
2️⃣ European Union set aside differences and agreed a COVID-19 recovery fund. This signal of solidarity, combined with monetary and budget stimulus, could propel the currency to $1.20, some predict.
Review:
1️⃣ Sharp improvement in PMIs will give a boost to July’s IFO Business Climate Index figures are due out of Germany.
2️⃣ German GDP for Q2
- Positive data expected. German Q2 GDP should be better due to spending recoveries.
3️⃣ German CPI for July
- Bullish prediction — Recovery in oil prices should lead to rise in CPI.
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#USD - Bearish Mode
Recap:
1️⃣ Tensions between the US and China, and the coronavirus developments in the world’s largest economy, were the main reason behind the greenback’s weakness.
Review:
1️⃣ The end of jobless benefits.
- Approximately 32 million Americans on unemployment benefits are currently receiving $600 per week in expanded jobless benefits, but this is due to expire on July 31st.
2️⃣ U.S. GDP
- Bureau of Economic Analysis' GDP figures will probably show the US economy shrank by an annualized 34% during the secord quarter, the fastest pace of contraction on record, as lockdown measures imposed from mid-March to contain the rapid spread of the pandemic hit activity and demand.
3️⃣ FOMC Meeting
- FED delivers its July monetary policy decision on Wednesday. While no rate cut is expected, the markets will want the assurance of more support and perhaps some adjustments to its asset purchasing program. The press conference will garner plenty of attention.
Recap:
1️⃣ Private sector activity continued to see a pickup in activity in July. The Eurozone’s Services PMI jumped from 48.3 to 55.1, with the Manufacturing PMI rising from 47.4 to 51.1.
2️⃣ European Union set aside differences and agreed a COVID-19 recovery fund. This signal of solidarity, combined with monetary and budget stimulus, could propel the currency to $1.20, some predict.
Review:
1️⃣ Sharp improvement in PMIs will give a boost to July’s IFO Business Climate Index figures are due out of Germany.
2️⃣ German GDP for Q2
- Positive data expected. German Q2 GDP should be better due to spending recoveries.
3️⃣ German CPI for July
- Bullish prediction — Recovery in oil prices should lead to rise in CPI.
=====
#USD - Bearish Mode
Recap:
1️⃣ Tensions between the US and China, and the coronavirus developments in the world’s largest economy, were the main reason behind the greenback’s weakness.
Review:
1️⃣ The end of jobless benefits.
- Approximately 32 million Americans on unemployment benefits are currently receiving $600 per week in expanded jobless benefits, but this is due to expire on July 31st.
2️⃣ U.S. GDP
- Bureau of Economic Analysis' GDP figures will probably show the US economy shrank by an annualized 34% during the secord quarter, the fastest pace of contraction on record, as lockdown measures imposed from mid-March to contain the rapid spread of the pandemic hit activity and demand.
3️⃣ FOMC Meeting
- FED delivers its July monetary policy decision on Wednesday. While no rate cut is expected, the markets will want the assurance of more support and perhaps some adjustments to its asset purchasing program. The press conference will garner plenty of attention.
Trade closed: target reached