Headlines:
- Dollar stays under pressure on the day
- US-China relations a factor to watch this week
- Central bank bonanza continues this week
- UK July final manufacturing PMI 52.1 vs 52.2 prelim
- Eurozone July final manufacturing PMI 49.8 vs 49.6 prelim
- Germany July final manufacturing PMI 49.3 vs 49.2 prelim
- France July final manufacturing PMI 49.5 vs 49.6 prelim
- Italy July manufacturing PMI 48.5 vs 49.1 expected
- Spain July manufacturing PMI 48.7 vs 50.2 expected
- Germany June retail sales -1.6% vs +0.2% m/m expected
Markets:
- AUD leads, USD lags on the day
- European equities higher; S&P 500 futures down 0.2%
- US 10-year yields flat at 2.654%
- Gold up 0.4% to $1,772.89
- WTI crude down 1.8% to $96.82
- Bitcoin down 3.9% to $23,015
It is a brand new month but the dollar is continuing to be pressured as it was at the end of last week. The post-FOMC selling is continuing with key levels under pressure on the day. USD/JPY briefly slipped below the 132.00 mark but is still down 0.7% to 132.20 levels at the moment. Some other key levels in play as highlighted earlier:
"Cable is trading up 0.6% to 1.2250 and contesting a firm daily close above 1.2200 as well as the 50.0 Fib retracement level at 1.2213. Meanwhile, USD/CAD is currently testing its 100-day moving average at 1.2773. Then, AUD/USD is looking for a firm daily break above 0.7000 to open up the path towards testing the 61.8 Fib retracement level at 0.7053 and the 16 June high at 0.7069. Elsewhere, EUR/USD is closing in on the 50.0 Fib retracement level at 1.0283 - which remains a key topside resistance since the middle of last month."
Equities are looking more tentative with European indices mildly higher but US futures are a touch softer. We'll see how Wall Street takes to things but if anything, we could see last week's optimism stretch further.
The bond market isn't hinting at much even though a potential technical breakdown in 10-year Treasury yields is still looming. Yields are little changed on the day though Italian bonds have some reason to cheer as pointed out here.
