In terms of economic data, a relatively calm day awaits us. The focus will be on the indicators of business activity and consumer confidence in the euro area.
Despite the significant numbers, we do not expect them to have a lasting impact on the euro.
The ECB’s monetary policy decision and a landmark press conference will be key drivers.
As the ECB is expected to stick to its policies, the ECB’s press conference will be the main focus of the market.
Comments on inflation, economic outlook and asset purchases will be key.
At the time of writing, the euro is up 0.03% to $ 1.1798.
Another calm day on the economic calendar lies ahead. Later in the day, the focus will be on CBI industrial trending orders. Since the markets have nothing else to consider, we should expect some sensitivity of the pound to these numbers.
Ultimately, however, market sentiment regarding the economic outlook amid the latest surge in COVID-19 cases will remain a key factor in the short term.
At the time of writing, the pound is down 0.04% to $ 1.3708.
Across the pond
In the economic calendar, this day will be busier. Number of applications for unemployment benefits for the week ended 16th July will be in the spotlight today.
Expect a spike in requirements to seriously affect market risk sentiment. Markets will expect a fall to levels below 300k …
At time of writing, the Spot Dollar Index is up 0.08% to 92.829.
The economic calendar has a quiet day ahead, with no important statistics to point the loonie in the direction.
The lack of statistics will leave the Canadian dollar in the hands of intraday market risk sentiment.
At time of writing, the Canadian dollar is down 0.17% to hit 1.2577 Canadian dollars against the US dollar.
For all of today’s economic events, check out our economic calendar.