Forex Today: Draghi set to rock EUR/USD, PM Boris Johnson culls cabinet, top-tier US data eyed
|Here is what you need to know on Thursday, July 25th, the European session:
- The European Central Bank is left, right, and center. President Mario Draghi has pledged to provide fresh monetary stimulus but analysts are split on the timing: now or in September. Moreover, it is unclear if the ECB will settle for only cutting interest rates or also opening the door to resuming the QE program. Markit's latest PMIs have been downbeat and increase expectations for imminent action. German IFO Business Climate will provide the last data point before the event. EUR/USD has been on the back foot.
- UK PM Boris Johnson has announced his new cabinet which includes Thatcherite Sajid Javid as Chancellor of the Exchequer and hardline Brexiteer Dominic Raab as Foreign Secretary, lowering the chances of a deal with the EU. Political experts suspect the UK is heading to elections. GBP/USD has been steady amid the change of the guard.
- US data was mostly disappointing with New Home Sales coming out at 646K annualized – another worrying sign for the sector. Today's Durable Goods Orders provides critical insight for Friday's GDP. The USD is stable and next week's Fed decision is awaited.
- Cryptocurrencies are recovering with Bitcoin topping $10,000. Oil and gold are stable.
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