The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
5 important events this week will bring us!
- FOMC meeting minutes (Wed, 21:00 MT (18:00 GMT)) – If the release contains any hawkish hints on the further Fed’s decisions, the USD will go up.
- Speech by the Fed Chair Powell (Wed, 18:00 MT (15:00 GMT)) – If the Fed Chair provides hawkish comments, the USD will be supported.
- British GDP and manufacturing production (Thu, 11:30 MT (8:30 GMT)) – According to the forecasts, GDP growth is expected to remain at the same level, while the indicator of manufacturing production is forecast to increase by 0.1%. If the actual figures are higher, the British pound may get a positive momentum.
- US CPI and core CPI (Thu, 15:30 MT (12:30 GMT)) – The indicator of a headline consumer inflation is anticipated to increase by 0.1%, while its core level (without food and energy prices) is going to increase by 0.2%, according to analysts. Higher-than-expected figures will be good for US dollar.
- Canadian employment change and unemployment rate (Fri, 15:30 MT (12:30 GMT)) – If the actual level of employment change is higher and the unemployment rate is lower than the forecasts, the Canadian dollar will rise.
- The British pound is awaiting the Brexit court ruling on legislation called “the Benn Act”. It requires the Government to either reach a deal or get Parliament’s approval for a no-deal Brexit by October 19.
- The US-China trade talks are expected to continue on Thursday and Friday in Washington.
The RBA will make a rate statement on August 4 at 7:30 MT time.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…