USD Continues to Tumble, Eurozone’s GDP and CPIs on the Agenda

Investors Continue to Abandon USD Even During Risk Off

The dollar continued to slide against all but two of the other G10 currencies. It gained only against CAD, while it was found virtually unchanged versus NOK. The main gainers were GBP, EUR, and NZD in that order.

FTSE 100 — Technical Outlook

The FTSE 100 index continues to trade within a range, roughly between the 5993 and 6320 levels. Although yesterday the price did fall below the lower end of that pattern, it wasn’t able to remain below that level. This morning, we are seeing that the index is once again flirting with that 5993 hurdle, however, we will stay neutral until we see a daily candle closing outside that range.

Euro-traders Await Eurozone’s GDP and CPIs

As for today, we have more Q2 GDP data due to be released, and that’s from the Eurozone as a whole. We also get the bloc’s CPIs for July. GDP is expected to have shrunk 11.2% qoq following a 3.6% contraction in Q1, while the headline CPI is expected to have ticked down to +0.2% yoy from +0.3%. No forecast is currently available for the core rate, which stood at +0.8% yoy in June. That said, with the German CPI sliding into negative waters, we would consider the risks surrounding the Eurozone print as tilted slightly to the downside.

EUR/AUD — Technical Outlook

Although we are seeing a bit of retracement to the downside this morning, EUR/AUD continues to balance above a short-term tentative upside support line taken from low of July 22 nd. As long as the rate remains above that upside line, we will stay positive with the near-term outlook.

As for the Rest of Today’s Events

From the US, we have personal income and spending, alongside the core PCE index, all for June. Personal income is forecast to have declined 0.5% mom after falling 4.2% in May, while personal spending is expected to have slowed to +5.5% mom from +8.2%. With regards to the core PCE index, it is forecast to have held steady at +1.0% yoy. We also have the final UoM consumer sentiment index for July, which is expected to be revised down to 72.9 from 73.2.

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