Will the European labor dynamic boost the EUR?
The European unemployment rate will be announced on Thursday at 12:00 MT time.
ECB will estimate health of bank credit
Next month, the European Central Bank is on the verge of reassessing the outlook for bank lending next month because there’s a likelihood that EU financial institutions could tighten credit supply and drive the current economic deceleration. That’s what Peter Praet, the bank’s chief economist uncovered.
His remarks will most probably cement market hopes for another round of multi-year ECB loans to financial institutions because existing ones worth approximately 750 billion euros start maturing in 2020, making a cliff-edge for lenders in Italy as well as other southern European nations.
The euro zone's economy has kept slowing, raising questions over ECB plans to have interest rates lifted after next summer.
Praet told that they don’t need to closely watch the transmission of monetary policy via the banking system. He added that in March they’ll come up with an assessment of the current as well as expected state of bank transmission.
In addition to this, Praet told that the ECB's Targeted Long-Term Refinancing Operations had appeared to be an extremely useful thing and they remained part of the major bank’s "toolbox".
By the way, Praet turned out to be the second ECB board member to pay much attention to the prospect of another TLTRO right after the previous week Benoit Coeure told that another round was probable.
In addition to this, the chief economist told that he actually expected the major bank’s estimates to be reduced again in March for the near term. Moreover, he drew attention to some positive things, including soaring employment and consumption.
The expert told that the EU’s key financial institution could push back the timing of its first post-crisis rate lift if required.
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Risk-off is back. All eyes on the US data.
The market sentiment deteriorated as the USA and some other countries are suffering from the new virus resurgence. Investors worry that the economic reopening may be delayed.
The big day for EUR on June 23
The Eurozone Manufacturing PMI will be published at 11:00 MT Time on June 23.
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The RBA: keeping the AUD alive?
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
What will affect markets on July 3?
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
How to trade on July 2?
The risk-on tone is back on the market again. Let’s look at main trading opportunities.
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