- NZD still bottom of the FX leader board this late in the European session, followed closely by the EUR, while USD and JPY have been the strongest.
- NZD fell after the RBNZ said it was investigating the possibility of using unconventional policy strategy, though it is still at a "very early stage." GBP barely reacted to the expected news of Boris Johnson winning the Tory leadership race today, although the EUR/GBP and EUR/JPY both fell as investors looked forward to the ECB rate decision on Thursday. USD found support from news of a bipartisan deal to suspend the US debt ceiling and boost spending levels for two years.
- The EUR/USD broke below the 1.12 handle this morning, as we had highlighted the possibility on a number of occasions. Participants trading the EUR/USD are now looking ahead to the upcoming European Central Bank meeting on Thursday. In addition, fresh Eurozone PMIs will be published Wednesday and German Ifo will come in on Thursday morning. Meanwhile from the US, we will have the first estimate of second quarter GDP on Friday, ahead of the FOMC meeting is next week.
- Stocks jumped in Europe in anticipation of a dovish ECB, and on the back of forecasting-beating earnings from the likes of UBS and Banco Santander (MC:SAN). In the US, shares in Coca-Cola (NYSE:KO) hit a fresh record thanks to a 6% rise in sales, while Beyond Meat continued to defy gravity as it extended its post-IPO surge to more than 730%, breaking the $200-a-share threshold for the first time. Boeing (NYSE:BA) and Facebook (NASDAQ:FB) report tomorrow.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.