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!
- Monetary policy meeting minutes by the RBA (Tue, 02:30 MT time (00:30 GMT)) – If the RBA is positive concerning the current economic outlook, the AUD will rise.
- Canadian CPI growth (Wed, 15:30 MT time (13:30 GMT)) – According to the forecasts, the inflation rate will advance by 1.9%. Higher-than-expected figures will boost the Canadian dollar.
- FOMC meeting minutes (Wed, 21:00 MT time (19:00 GMT)) – If the release contains more hints concerning the future easing, the USD will fall.
- ECB monetary policy meeting accounts (Thu, 14:30 MT time (12:30 GMT)) – If the European central bank is hawkish in its report, the EUR will be supported.
- Canadian core retail sales (Fri, 15:30 MT time (13:30 GMT)) – Analysts expect the indicator to remain at the same level. If the actual level is higher, the Canadian dollar will go up.
- The British pound has risen on the news that the Brexit party has stood down from the 43 additional seats in the Parliament. Previously, it rejected to contest the seats which belong to the Conservative party.
- According to the comments by the ECB vice president Luis de Guindos, the recession in the Eurozone seems to be an unlikely event.
- The American and Chinese trade negotiators held constructive discussions on Saturday to reach the phase one trade deal. It resulted in the risk-on sentiment in the markets.
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…