Yesterday’s market movers
- Germany CPI came in as expected at 2.3% MoM and 0.1% YoY. This did not support the weak Euro early morning. Euro continued losing ground against major counterparties.
- UK Trade Balance came in worse than expected, and so was Good Trade Balance. This was not good for the Sterling hence we saw GBP/USD dropping down around 1.58 level, not recovering until the beginning of the US market.
- The only piece of data for the US was the Trade Balance of May which has come worse than the prediction. US dollar lost its strong position later on the back of that.
Today’s market movers
- Ireland has been downgraded by Moody, with this we could see the Euro weakened against the dollar and the other major currencies.
- UK Claimant Count Rate is expected to be better than the previous and the ILO unemployment rate of May is expected at 7.7% as previous. We might see a good indication from the labour market in comparison with the US market. If the data comes in with improvement, we might see a support for Sterling.
- For the US, the main focus is the Ben Bernanke testimony. The chief will give out outlook of the economy and possibly talk about the QE3. By all means, whether the American’s going to do a further QE or not, it will be a big market mover. The Monthly Budget Statement of June is expected to be worse than the previous; this could have negative effect on the dollar.