Key Releases for the Current Trading Session

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EnclaveFX
Jul 19, 2022
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USA:

 

Today, the American dollar is losing ground to its top rivals, the euro, pound, and yen.

The market is trying to guess what additional moves the US Fed would take to combat record inflation, putting pressure on dollar quotations. Sources from The Wall Street Journal reported on Friday that the country's financial authorities still are not ready to move to such a sharp tightening and are likely to maintain their previous rate of increase of 75 basis points. Previously, it was assumed that officials would adjust the figure immediately after the June rise in the consumer price index to 9.1 percent and the producer price index to 11.3 percent by 100 basis points. Investors anticipate a recession in the US economy overall, but they are optimistic that it will be mild and brief, given the robust labor market and ongoing consumer demand.

Eurozone

Today, the euro is rising versus its key rivals, the yen, the pound, and the dollar.

Since long-term fundamental causes continue to be against the eurozone single currency, the rise in quotations is thought to be the product of technical considerations. Investors cannot decide on long-term deals because of the Italian government turmoil and the decrease in Russian gas supply brought on by the Nord Stream gas pipeline's maintenance stoppage. Since President Sergio Mattarella of Italy rejected Prime Minister Mario Draghi's resignation, the situation there may yet change. If so, analysts believe that the incomplete restoration of the provided Russian "blue fuel" volumes is authentic even after all the work is finished. In this scenario, numerous industries will suffer significant setbacks, especially in the region's leading economy, the German one. The market is anticipating the release of June inflation figures tomorrow. The euro would come under pressure once more if the consumer price index rises above the predicted 8.6 percent level.

The country of the UK

The pound is gaining ground today against the dollar and the yen but losing ground against the euro.

Other variables impact how the British pound is traded when there are no substantial economic releases. It is important to note that investors are still paying attention to the candidates running to become the next Prime Minister of the United Kingdom pre-election remarks. Foreign Minister Liz Truss and former Finance Minister Rishi Sunak fought during the discussion last Friday. As a result, Truss offered to drop Sunak's earlier proposal to raise several taxes, including a payroll tax and a company tax worth more than 30 billion pounds annually, to lower the national debt. According to the minister of foreign affairs, a proactive tax strategy will make company investing unattractive. Sunak responded by pointing out that decreasing fees would result in an even higher inflation rate. Investors anticipate the release of June labor market statistics tomorrow, which could show signs of weakness. The unemployment rate is expected to increase from 3.8% to 3.9%, while employment is expected to decrease from 177.0K to 170.0K. Forecasts coming true could put pressure on the pound.

Japan

Today, the yen is losing ground to the euro and the pound while gaining ground to the US dollar.

Financial institutions are closed today due to a holiday in Japan, and investor activity is down. The outcome of the Bank of Japan's interest rate meeting, slated for Thursday, will be significant to bidders. It should be emphasized that the country's financial authorities are not yet prepared to reduce economic incentives because they still view the present price increase as a passing occurrence. As a result, they are not likely to change their minds even at this point. Officials will likely confirm their desire to continue a fair monetary policy and keep the interest rate at -0.10 percent, increasing pressure.

Australia

Today, the Australian dollar is gaining ground versus its key rivals, the yen, the euro, the pound, and the US dollar.

Quotes of the trading instrument support investors' aspirations for improving diplomatic relations between Australia and China. Although the nations are commercial partners, their political disagreements limit their collaboration, resulting in several economic limitations. Penny Wong, the foreign minister of the new Australian government, and Wang Yi, the foreign minister of China, held talks last week with optimism that the conflict would be defused and artificial trade obstacles would be removed. Bloomberg reports that the Chinese government is specifically looking into easing a two-year restriction on importing coal from Australia. As opposed to what was previously believed, the Australian Inflation Institute analysis released today claims that the present increase in consumer prices in the nation results from businesses' desire to boost corporate profits by charging more significant markups for goods and services. The Reserve Bank of the country's most recent meeting's minutes, which may provide signals about upcoming financial authority measures, will be published tomorrow.

Oil

The price of oil is still rising today.

The remarks are backed by President Joe Biden's visit to Middle Eastern nations produced no results and that Russian gas shipments to Germany are still being suspended. At the same time, repairs are being made to the Nord Stream gas pipeline. The US-Arab summit on Saturday did not address oil-related problems, according to Saudi Arabia's Foreign Minister Faisal bin Farhan Al-Saud, who also stated that the OPEC+ participants would continue to assess market conditions when determining future production quantities. Investors are also concerned about interruptions in the supply of Russian gas to the eurozone nations.