The Pound Remains in the Spotlight as Brexit Troubles Weigh
Earlier in the Day:
There were no material stats through the Asian session to provide direction through the early part of the day.
A lack of stats left the markets to react to U.S corporate earnings results and U.S economic data from Tuesday.
There’s also trade war chatter that continues to do the rounds…
For the Majors
The losses for the Aussie Dollar came as the markets continued to respond to the RBA minutes released on Tuesday.
The Day Ahead:
For the EUR
It is a relatively quiet day ahead for the EUR. The Eurozone’s finalized June inflation numbers are due out later this morning.
We will expect the stats to have a relatively muted impact on the EUR, barring a material deviation from prelim figures.
The Eurozone’s core annual rate of inflation continues to sit well below the ECB’s target, supporting the dovish stance reflected in the latest minutes.
Outside of the stats, geopolitical risk could also influence on the day…
At the time of writing, the EUR was down by 0.01% to $1.1210.
For the Pound
It’s a big day ahead, with the UK’s June inflation figures due out later this morning.
Following some upbeat GDP numbers last week, the annual rate of inflation will need to hold onto 2% levels to support the MPC hawks. There aren’t too many though as sentiment towards Brexit wanes…
Outside of the numbers, we can expect any chatter from parliament and the UK leadership race to also be of influence.
At the time of writing, the Pound was down by 0.15% to $1.2388.
Across the Pond
It’s a relatively quiet day ahead, with U.S building permit and housing starts due out later today.
Barring particularly dire numbers, we would expect the figures to have a relatively muted impact on the Dollar.
While the stats will lack influence, rises in building permits and housing starts supports those with the view that the U.S economy continues to sit in a strong position.
Outside of the numbers, chatter from the Oval Office will also need to be considered on the day.
At the time of writing, the Dollar Spot Index was up by 0.04% to 97.43.
For the Loonie
June inflation figures are due out of Canada later in the day. Following the BoC’s forward guidance from last week, the annual rate of inflation will need to hold onto 2% levels to support the Loonie.
We would expect May manufacturing sales figures to have a relatively muted impact on the Loonie on the day. Sales figures are due out alongside the inflation numbers.
The Loonie was up 0.18% at C$1.3065, against the U.S Dollar, at the time of writing.
This article was originally posted on FX Empire
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