The Dollar/Yen traded lower on Monday, putting it in a position to hit a two-week low, as worries about an escalating trade war between the United States and its major trade partners continued to weigh on appetite for risk.The EUR/USD strengthened on Monday, following through to the upside after Friday’s rally was fueled by improved regional economic growth data and new assurances by Italian politicians that their nation would not leave the single currency.

Markets head into a data-light EUR calendar for the second straight trading day while the headlines around the trade war issue continue to drive the sentiment. There is nothing on the cards from the Euroland. However, the testimony by the newly appointed Bank of England (BOE) MPC member Haskel before the Treasury Select Committee (TSC) will be eyed for fresh hints on the UK’s interest rates outlook while BOE member McCafferty is due to speak about monetary policy. From US, FOMC members Bostic and Kaplan are scheduled to speak later in the day, with any central bank commentary now likely to be factoring in the possible impact of a trade war on the U.S economy and outlook on rates.

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mask Trade Tension Remains with Speeches to Direct the Market Through the Day

26/ 06/ 2018

Trade Tension Remains with Speeches to Direct the Market Through the Day

Daily Update - 26th June 2018

Yesterday’s Market

  • EUR German IFO - Business Climate 
  • USD New Home Sales Change 

Yesterday’s Focus

The EUR/USD is trading around the 1.1700 level after yesterday’s Turkish Presidential election results. The German IFO Business Climate fell to 101.8 in June of 2018 from an upwardly revised 102.3 in May and compared to market expectations of 101.7. It is the lowest reading since May of 2017, due to a decline in the business conditions index. US new home sales rose 6.7% m-o-m to 689k in May, above expectations from a downwardly revised April reading of 646k.

 

Today’s Market

  • USD FOMC Member Bostic, FOMC Member Kaplan Speech Speech
  • GBP MPC Members Haskel, McCafferty Speech 

Today’s Focus

Today the market will be quite apart from some of the mid-tier economic events from US and UK. No major reports coming from the Euro Zone. FOMC members Bostic and Kaplan speeches will be from the US which will be happening today. From United Kingdom, Bank of England Monetary Policy Committee members Jonathan Haskel and Ian McCafferty will be giving out a speech which will discuss on the economic conditions in the UK. An absence of Eurozone data today will shift the attention to the United Kingdom, where the British Bankers Association (BBA) is expected to report on monthly mortgage approvals.