U.S. threatens new tariffs on Chinese goods will this derail the Dollar on a Long term

Daily Update - 11th July 2018

Yesterday’s Markets

•             GBP Manufacturing Production, Gross Domestic Product

•             EUR ZEW Survey – economic & current situation

Yesterday’s Focus

On Tuesday, For the Pound, key stats through the week include May’s industrial and manufacturing production and, trade first release of UK GDP which resulted negative.

Followed by reports from Euro ZEW Survey & Economic Sentiment reports was released with negative results which indicates weaker Investor confidence among the Business arena of the Euro Zone.

 

Today’s Markets

•             CAD BoC Rate Statement, Interest Rate Decision, Monetary Policy Report, Press Conference

•             GBP BoE Governor Carney Speech

Today’s Markets

On Wednesday, the Bank of Canada will lay down heavy hints that it is about to raise rates in this all-important July meeting, which also consists of new forecasts and a press conference by Governor Stephen Poloz and Deputy Carolyn Wilkins.

The economy has shown signs of picking up in the second quarter and the most encouraging data point is the increase in wages.

However, trade relations with the US have deteriorated since their last meeting. The US imposed tariffs on steel and aluminum and Canada retaliated. Nevertheless, it seems that the BOC will dismiss this source of uncertainty at the moment and hike from 1.25% to 1.50%. A lot depends on the post-decision press conference.