Economic data coming up in the European session
UK labour market data on the agenda today
The dollar is keeping steady with commodity currencies on the defensive as we look towards European trading today. Of note, USD/CAD saw a big U-turn from 1.2430 to 1.2500 after the BOC policy decision yesterday.
The central bank met expectations but market participants evidently were looking for more, even more so after the RBNZ spoiled things with its surprisingly hawkish tone earlier in the day. The loonie was also not helped by a slump in oil prices.
There was a bit of a delayed reaction, if you want to call it that, to OPEC+ reaching a compromise but there is also talk of Iraq wanting to ask for a higher baseline.
In early July, Iraq, Kazakhstan, and the UAE all requested for higher baselines so if the latter gets it, why not the others try to push for it as well.
Oil is down 0.9% today to $72.50 but there support closer to the month's lows at the $70.80-10 region may offer dip buyers more conviction to reload.
Looking ahead, there is little on the agenda to really shake things up as the market will still try to sort out all the clues at hand on the week. Treasury yields retreated yesterday while equities edged lower so there are still some mixed tones out there.
0600 GMT - UK June jobless claims change, claimant count rate
0600 GMT - UK May ILO unemployment rate, employment change
0600 GMT - UK May average weekly earnings
Prior release can be found here. UK labour market conditions have been showing some decent improvement as of late and such a development should continue to be reflected in today's report, with wages growth also estimated to keep more robust. This will help keep the BOE on their toes when considering to normalise policy in the months ahead.
The second day of Powell's testimony will also be up later in US trading but the usual case is that there won't be much of anything new that follows after the first day.
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.