The story this week in the eurozone could be one of soft survey data supporting the ECB’s assertion that near-term economic risks are on the downside. This could be most evident in tomorrow’s release of preliminary July PMIs, notes Chris Turner, FX strategist at ING.
EUR/USD is trading in very tight ranges below 1.09
“Today, however, we will get some consumer confidence data for July. The Dutch reading has already retreated somewhat and the eurozone reading is due at 16:00 CET. Further improvement in the eurozone aggregate index is expected, but a softer reading suggests that hopes for positive real wage growth leading to higher consumption are fading.”
“EUR/USD is trading in very tight ranges just below 1.09. Traded volatility is exceptionally low – for example, three-month volatility is only 5.3% – and the market has concluded that there is no trend here. Probably the next big takeaway here (after Friday’s core PCE figure) is the Fed meeting next Wednesday. That is likely to be a downside risk for the dollar.”
“Aside from consumer confidence later in the day, the only notable event on the eurozone calendar is a speech by ECB chief economist Philip Lane. However, don’t expect it to provide many clues about an ECB rate cut in September, as the ECB has shied away from forward guidance.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
