BOE the key highlight on the agenda today
The dollar is holding its ground so far on the day, maintaining the bounce from yesterday after Fed vice chair Clarida helped to spur some upside in the greenback.
His comments were a confirmation of what we already know but he indicated an openness to tapering by the end of the year if there is “substantial further progress”. Adding that perhaps rate hikes may come along in 2023 as planned. In case you missed it:
USD/JPY got a decent bounce off that and is tracking higher again today as price works its way past the 100-day moving average @ 109.59.
Besides that, major currencies aren’t doing a whole lot going into Europe as we start to settle into the typical pre-NFP lull ahead of tomorrow’s US jobs report.
The BOE will provide a key risk event for the pound but given the slight setback to recent data, it is likely that policymakers will stay away from any hawkish tilt for now.
0600 GMT – Germany June factory orders data
0730 GMT – Germany July construction PMI
0830 GMT – UK July construction PMI
1100 GMT – BOE announces August monetary policy decision
1130 GMT – US July Challenger job cuts, layoffs
The data provides information on the number of announced corporate layoffs by industry and region and acts as a general labour market indicator.
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.