Keep an eye on price movements at the start of the second half of the month
19.07.2021
- Turkey Consumer Confidence Index
- Remarks by Haskell, a member of the Bank of England’s Monetary Policy Committee
Last weekend, stock markets in both Europe and the U.S. declined. The UK’s FTSE, where daily COVID-19 cases have exceeded 50,000, closed at 7,008, down 0.06% from the previous day. Although the number of cases in the UK is on the rise again, the lockdown is expected to be lifted as scheduled today.WTI crude oil continued to decline, trading around $70 per barrel. OPEC+ agreed to reduce production cuts starting in August, and prices fell on expectations of stable supply.
The foreign exchange market opened without any significant gaps, and trading has been generally subdued during today’s Asian session. In particular, the EUR/USD pair is trading with very little direction around the 1.180 level, and on the hourly chart, the upside appears to be slightly capped. However, since the pair remains above the 200-day moving average on the weekly chart, this is a phase where we need to carefully assess whether a downtrend is likely to develop.
Today’s economic calendar includes the Turkish Consumer Confidence Index at 4:00 PM, remarks by UK MPC member Haskell at 7:00 PM, and the U.S. NAHB Housing Market Index at 11:00 PM; aside from these, no major speeches or economic releases are scheduled.With the ECB interest rate decision on Thursday, the 22nd, and the release of European manufacturing and non-manufacturing PMI flash estimates coming up this week, we will be watching to see if European currencies find a clear direction.
Author: Keisuke Sakurai
