BOE in focus today
The dollar is mildly weaker but off earlier lows to start the session as the major themes this week continue to play out. Gold is keeping mild gains after a solid outing yesterday, while stocks are still in a cheerful mood ahead of the focus on tomorrow's NFP.
Meanwhile, dollar weakness is still the name of the game in the major currencies space.
Looking ahead, the BOE will be a key focus in European morning trade but is likely to be a non-event and so the narrative will slowly shift towards what the NFP data has to offer markets ahead of the weekend tomorrow.
0600 GMT - Germany June factory orders data
Prior release can be found here. Industrial orders are expected to rebound further on better domestic demand but this is a bit of a lagging indicator as it pertains to Q2 data.
0600 GMT - BOE announces August monetary policy decision
Prior decision can be found here. After the move to increase its QE target in June, the BOE should stand pat at this meeting and avoid much drama as they keep a more wait-and-see approach. Their hands are relatively tied as they are waiting to see how the economy performs as government stimulus wears off and the possibility of a virus resurgence. For now, they have room to maintain the status quo, so expect them to utilise that.
0730 GMT - Germany July construction PMI
Prior release can be found here. Much like other sectors of the economy, conditions should show some improvement after bottoming out in April but any optimism surrounding the recovery and outlook still depends on labour market conditions in general.
0830 GMT - UK July construction PMI
Prior release can be found here. Construction activity showed a modest rebound in June and conditions should still see some improvement in July, though the pace of the recovery may slow down a little as labour market conditions continue to be sluggish.
1130 GMT - US July Challenger job cuts data
Prior release can be found here. The data provides information on the number of announced corporate layoffs by industry and region and acts as a general labour market indicator.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
