Spotlight Falls on the G20 Summit, EZ CPIs and US core PCE on Today’s Agenda

Investors on the Edge of Their Seats, Awaiting the Trump-Xi Meeting

The dollar traded lower against most of the other G10 currencies on Thursday and during the Asian morning Friday. It lost the most ground against the safe-havens CHF and JPY, while it gained only versus NOK, SEK and GBP.

Euro Stoxx 50 — Technical Outlook

Although Euro Stoxx 50 continues to slowly drift lower from Thursday last week, the move down is not very strong, which suggests that investors are somewhat in a “stand by” mode. Technically, the index could be forming a potential flag formation, which tends to break to the upside, according to TA rules. That said, we will remain cautious and wait for a clear break through one of our key levels, before we examine a further directional move.

Eurozone CPIs and the US core PCE on Today’s Agenda

Ahead of the Trump-Xi meeting, investors could pay some attention to Eurozone’s preliminary inflation data for June, as well as the US core PCE index, the Fed’s favorite inflation metric, for May.

EUR/USD — Technical Outlook

After touching the area slightly above the 1.1400 barrier, at 1.1413, EUR/USD has moved back down and met its strong support near the 1.1345 zone. Even though the rate rebounded from that area, the bulls didn’t have enough steam to push it above the 20 SMA of the Bollinger bands. For now, we will stay somewhat neutral, but we will monitor the 1.1345 support area carefully, as a break of it could lead to deep slide.

As for the Rest of Today’s Events

During the European session, apart from Eurozone’s CPIs, we also have the final UK GDP for Q1. Expectations are for the final print to confirm its preliminary estimate, namely, that the UK economy accelerated to +0.5% qoq in the three months of 2019, from +0.2% in Q4. Nonetheless, we already had data pointing to how the economy has performed during Q2, and the picture was not so bright. The economy shrank 0.4% mom in April, with the NIESR projecting a 0.2% contraction for the whole quarter. Even the BoE revised lower its projection for Q2, to 0.0% from 0.2% previously.



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