The EUR/USD reached a three-month high (and Gold a five-year high), as the USD’s bearish sentiment remained in play on the back of the FED’s possible easing. The market expectation on how the ECB and FED may act in the medium term provided an additional boost to the Euro. On other news there seems to be advances on the US-China trade relationships, as Chinese officials stated that both the US and China should make compromises for the two countries to find a solution.

Also, oil prices continue to rise on the back of Middle East tensions. US Secretary of State Pompeo stated that “significant” sanctions on Tehran would be announced,yet also stated that the US is prepared to negotiate without any preconditions.

Other economic highlights, today and early tomorrow

Today during the European session, we get France’s final GDP growth rate for Q1 and Germany’s Ifo Business Climate for June. During tomorrow’s Asian session, we get New Zealand’s trading data for May.

As for the rest of the week:

On Tuesday, we get from the US the CB consumer sentiment for June and Fed Chair Powell speaks. On Wednesday, we get from New Zealand RBNZ’s interest rate decision, from Germany the GfK consumer Sentiment for July, from the Czech Republic CNB’s interest rate decision, and from the US the durable goods orders growth rates for May. On Thursday, we get from Japan the retail sales for May, from Germany the preliminary HICP rate for June and the final US GDP growth rate for Q1. On Friday, we get from Japan, Tokyo’s CPI rates for June and the industrial production for May. From the UK we get the final GDP growth rate for Q1, from the Eurozone the preliminary HICP rate for June and Canada’s GDP for April.

EUR/USD H4

WTI H4

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