Daily Update - 21st July 2020
Yesterday’s Market EUR ECB's De Guindos speech US Factory Orders GBP BoE's Haldane speech Yesterday’s explained The European Central Bank (ECB) Vice President Luis De Guindos offered some optimistic comments on the Euro area growth outlook, in a speech on Monday. He said the ECB had expected Q2 GDP drop of 13%, now sees contraction "slightly better". High frequency data, most recent data that the ECB is receiving shows that drop in Q2 likely to be better than expected. Hopes that European government’s response is proportionate to the challenge. The Pound retained its gains after comments from BOE’s Haldane, who said that the UK’s recovery is still looking V-shaped, and the economy has clawed back about half the output it lost in March and April. He also said that policymakers would consider negative rates “if there was a further negative shock to the economy. Today’s Market AUD RBA Meeting Minutes AUD RBA's Governor Lowe speech CAD Retail Sales Today’s explained The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD. Philip Lowe replaced Glenn Stevens as governor of Australia’s central bank. Lowe was the Deputy Governor of the Reserve Bank of Australia, a position he held since February 2012. The Retail Sales released by the Statistics Canada is a monthly data that shows all goods sold by retailers based on a sampling of retail stores of different types and sizes. The retail sales index is often taken as an indicator of consumer confidence. It shows the performance of the retail sector in the short term. Generally speaking, the positive economic growth anticipates bullish movements for the CAD.
