Better than expected data coming out of the US yesterday enabled a strong move up on the USD. Concerns of an aggressive monetary easing in the US seem to be reducing a bit (for now). Also, current weakness in other currencies (mainly the euro and the pound) may have helped this bid up on the dollar. The Sterling is trading below $1.24 this morning on the back of this dollar strength and growing concerns that a no-deal Brexit is becoming increasingly likely.

Oil prices traded lower yesterday as news broke out that the US is about to start negotiations with Iran. A number of media reports cited U.S. Secretary of State Mike Pompeo as saying "for the first time" Iranian officials"are ready to negotiate on their missile program”.

Other economic highlights, today and early tomorrow

Today, during the European session, we get UK’s main inflation measures for June and from the Eurozone the final CPI rate for June. In the American session, we get from the US the number of house starts as well as the EIA crude oil inventories figure for the past week, while form Canada we get the CPI rates for June. During tomorrow’s Asian session, we get Japan’s trade data for June and Australia’s employment data also for June. Please bear in mind that the G7 meeting is to begin tomorrow in Paris, France and on the agenda there is the issue of cryptocurrencies and cybersecurity. Given the recent concerns, expressed by various national authorities (including France, Japan and the US), we could see some delegates calling for stricter regulation of the cryptomarket, which could create some volatility.

EUR/USD H4

WTI H4

‍