Will the euro's rally continue, riding on the momentum from the start of the month?
02.08.2021
- Retail Sales in Germany
- Swiss Consumer Price Index
Last weekend, the three major U.S. stock indices all fell, with the Nasdaq—which saw the sharpest decline—closing at 14,672 points, down 0.71% from the previous day. WTI crude oil edged slightly lower to around $73.10, while gold erased all of the gains it had made the day before and is currently trading around $1,811.
In the foreign exchange market, the euro rose against the dollar as the dollar index declined. It is currently trading around 1.187, with the 20-period moving average (MA) acting as support on the 4-hour chart, and the pair is attempting to move higher. Since the 20-period MA is also providing support on the daily chart, this is a point where we need to carefully assess whether the upward trend will continue. The euro also rose against the pound and is currently trading around 0.854.
Today’s schedule includes German retail sales at 3:00 PM (Asia time), Swiss CPI and retail sales at 3:30 PM (Asia time), Turkey’s Manufacturing PMI at 4:00 PM (Europe time), the U.S. Manufacturing PMI (final reading) at 10:45 PM (U.S. time), and the U.S. ISM Manufacturing Index and U.S. construction spending at 11:00 PM (U.S. time).With the Australian interest rate decision on the 3rd and the UK interest rate decision on the 5th coming up this week, we will first be closely monitoring price movements at the start of the week to see if any countries mention tapering monetary easing.
Author: Keisuke Sakurai
