IFO and UK GDP the focus ahead of dollar week

<p>Dollar trades are mixed in the FX space as the markets correct moves seen earlier in the week. The S&P is making a fresh all-time […]</p>

Dollar trades are mixed in the FX space as the markets correct moves seen earlier in the week. The S&P is making a fresh all-time high. The euro continues to outperform following stronger PMI data from Europe despite US Treasury yields trading slightly higher as US weekly jobless claims fell to an eight-and-a-half-year low of 284k. In other news the NZD has fallen further as the July business confidence survey conducted by ANZ fell to a 14-month low of 39.70.

In Japan the inflation rate dropped for a second consecutive month as the market looks to the BoJ for further stimulus as they predict the 2% inflation target may be a little optimistic.

The data focus today will be the German IFO release and Q2 estimate reading for UK GDP. The US session brings us volatile durable goods number or, as I like to call it, aircraft sales.

I’m expecting the market to be cautious today ahead of a big week in the US which should give us some direction as to the speed of the Fed’s policy normalisation with the release of GDP and labour data along with the FOMC meeting on Wednesday.

 

EUR/USD

Supports 1.3425-1.3375-1.3295 | Resistance 1.3480-1.3505-1.3525

 

USD/JPY

Supports 101.40-101.20-100.75 | Resistance 102.00-102.30-103.00

 



GBP/USD

Supports 1.6950-1.6910-1.6880 | Resistance 1.7025-1.7090-1.7125

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