Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3).
Chinese yuan is in focus
China’s Manufacturing PMI will be out on Wednesday at 04:00 MT time!
Instruments to trade: USD/CNH, CNH/JPY, EUR/CNH
Manufacturing PMI is the leading indicator of economic health in the country. Basically, it is the survey of purchasing managers, which reveals how they assess current business conditions. Being the world’s second largest economy, Chinese figures usually influence the whole market. These days, the impact has increased amid the coronavirus pandemic as investors measure the global recovery by Chinese economic figures. That’s why this report won’t be important only for the Chinese yuan itself, but also for other financial assets. It will add fresh volatility to the market and may change the overall sentiment. If China’s PMI is better than the forecasts, it will improve the investor’s mood and push up riskier currencies such as the AUD, the NZD, the GBP, and stocks. In the opposite scenario, if China’s PMI is worse than anticipated, it will deteriorate the market sentiment and push upwards safe-haven currencies such as the USD and the JPY.
- The better China’s PMI – the higher the risk tolerance!
- The worse China’s PMI – the lower the risk appetite!
Oil dropped to the lows unseen since late May. Bitcoin has dropped below $30,000, while gold has reversed up from a dip under $1,800.
Australian monthly retail sales will be announced at 04:30 MT time (GMT+3) on Wednesday, July 21. T
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!