A light one on the data docket as risk sentiment remains the focal point
Good day, everyone! Hope you're all doing well as we look to get things going in the session ahead. It's been yet another lively start to proceedings with the dollar on the back foot amid some flip-flopping in the risk mood.
The yen strengthened initially only to fall off after the PBOC fixed the yuan under 7.00 against the dollar, seeing risk assets pare losses ahead of European morning trade. The fact that the PBOC is also conducting a massive CNH bill issuance in HK is also feeding into signals that they don't want the yuan to weaken by all too much.
Meanwhile, the kiwi is surging after NZ labour market report beat expectations handily.
Looking ahead, it'll be a quiet one on the economic calendar so expect the market focus to stay on the US-China trade rhetoric and what that entails for risk sentiment.
0600 GMT - Germany June factory orders data
Prior release can be found here. Factory activity and exports continue to remain subdued in Q2 as seen in the May reading. The expectation is for a mild rebound in June but regardless, it should just reflect a weakening industrial sector in the German economy.
0730 GMT - Germany July construction PMI
Prior release can be found here. Construction activity is feeling the pinch of a weaker manufacturing sector in Germany and such sentiment is likely to lead to subdued conditions like we're seeing currently to start Q3.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading!
