The tricky August trading continues
It was turnaround Wednesday in trading yesterday as the dollar reversed a good chunk of the moves since the start of the week, gaining ground prior to the FOMC meeting minutes release and then some after.
Stocks hit the pause button after advancing to all-time highs on Tuesday and that is weighing further on the risk mood in trading today. Asian equities are lower across the board while US futures are also seen down by ~0.5% currently.
Elsewhere, precious metals also reversed lower with gold slumping back under $2,000 and breaking back under key near-term levels in the process.
Major currencies are keeping calmer but the reversal in the dollar yesterday adds to more indecisiveness surrounding trading sentiment in what has been a rather tricky trading period so far this month - not helped that this is one of the quieter times in the year.
Looking ahead today, there isn't much notable data in European morning trade to shake things up so perhaps we are likely to see more choppiness and quiet tones before more buzzing action once again in North American trading later.
0600 GMT - Germany July PPI figures
Prior release can be found here. A lagging and proxy indicator of inflation pressures, which has been keeping more subdued amid the fallout from the virus outbreak.
0600 GMT - Switzerland July trade balance data
Prior release can be found here. Much like everywhere else, trade conditions continue to show some improvement and are expected to keep that way but are still holding below pre-virus levels for the most part. A minor data point.
0900 GMT - Eurozone June construction output
Prior release can be found here. Construction activity is expected to improve further in June but this is lagging data as it pertains to Q2, so it is relatively negligible.
1130 GMT - ECB releases the account of its July monetary policy meeting
The July decision can be found here. With the ECB in wait-and-see mode, there shouldn't be anything new from the 'minutes' here to tell us something we don't already know.
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.
