Market themes of the Day: King Dollar pulls back

Mario Blascak, PhD Independent Analyst

What you need to know before markets open
In Europe

A trade war could knock 3% off global GDP, the Bank of France study said.
The IMF warns of the Eurozone growth risks being serious and could lead to a hard landing.
No-deal Brexit would cost European Union 1.5% of GDP, according to the IMF.
German PPI is set to rise by 0.2% m/m in June while increasing 2.9% y/y.

In the UK

The UK retail sales slumped -0.5% m/m while core retail sales excluding motor fuel sales fell -0.6% m/m in June, further derailing the Bank of England from possibly hiking rates in August. For details read my Analysis here.
The UK public sector net borrowing complements data-heavy week for the UK on Friday with net borrowing expected to reach £3.6 billion in June.

In the US

The US weekly initial jobless claims rose 207K during the week ending July 14, the lowest level of claims since December 6, 1969.
Philadelphia Fed manufacturing survey accelerated to 25.7 in July, rising above expectations.
President Trump says he is “not thrilled” about US interest rate hikes.

In Canada

Canada is set to be in the spotlight on Friday with the release of two important macro indicators. Canada’s core inflation is set to rise by 1.4% y/y in June while retail sales are seen expanding by 0.5% over the month in May after auto sales are excluded. For details please read Yohay’s Preview here and check the details of how to trade it with USD/CAD here.

Author

Mario Blascak, PhD

Independent Analyst

Dr. Mário Bla&scaron;čák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

EUR/USD weakens to near 1.1900 as traders eye US data

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GBP/USD stays in the red below 1.3700 on renewed USD demand

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Gold sticks to modest losses above $5,000 ahead of US data

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Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.