Daily Update – 23rd July 2019
The euro declined against the U.S. dollar on Monday, as foreign exchange investors were waiting to see by how much and how fast policymakers might ease policy, beginning with the European Central Bank on Thursday. Traders see about a 46% probability European policy-makers will lower a key deposit rate by 10 basis points to -0.50 basis points to combat risk from global trade tensions and anemic regional inflation. Britain's pound declined against the dollar on Monday, as British currency was weighed down ahead of the result of the Conservative party’s leadership election on Tuesday, which will decide Britain’s next prime minister. Market participants have been buying more options to protect against losses in sterling since early May and have consolidated their positions in the past few days, according to three-month sterling risk-reversals, which measure demand for buy and sell options on the British currency. The last votes to choose a new Conservative party leader are expected to be handed in on Monday, followed by an announcement on Tuesday. EUR ECB bank Lending Survey GBP FPC Meeting Minutes The macroeconomic calendar was quite scarce at the beginning of the week, as no data were coming from Europe, this Tuesday UK will publish the CBI Industrial Trend Survey on Orders for July, previously at -15, and the FPC Meeting Minutes. Nevertheless, the result of the Tory´s Leadership Contest will likely overshadow everything else.Yesterday Focus
Yesterday's Explained
Today's Market
Today’s Focus
