- Dollar keeps steadier so far on the day, eyes on US retail sales later
- US retail sales gains more attention as Japan eyes big data to intervene
- BOJ data suggests Japan also intervened in the FX market on 12 July
- Eurozone May trade balance €13.9 billion vs €15.0 billion prior
- Germany July ZEW survey current conditions -68.9 vs -74.5 expected
- 10-year Treasury yields erase the jump higher from yesterday
- Italy June final CPI +0.8% vs +0.8% y/y prelim
- European stocks hold lower in the opening stages today
- What are the main events for today?
- Geopolitics trumps higher inflation as top tail risk in latest BofA fund manager survey
- Eurostoxx futures -0.4% in early European trading
- FX option expiries for 16 July 10am New York cut
- A couple of light releases to move things along in European trading today
It was an uneventful European session with no central bank speaker and just the German ZEW survey as the main highlight. The survey recorded the first decline in 2024 due to a bigger than expected fall in German exports in May, the political uncertainty in France and the lack of clarity regarding the future monetary policy by the ECB.
The index has been climbing steadily, so a minor pullback isn’t something to be concerned about. The situation indicator for the Eurozone, on the other hand, changed only marginally climbing 2.5 points to a new reading of minus 36.1 points.
In the markets, the major currencies are little changed with the US Dollar flat on the day. Treasury yields erased yesterday’s gains. The S&P 500 and the Nasdaq are mostly flat while the Russell 2000 continues to outperform.
Gold is having another good day as it’s up 0.80% while crude oil is going for the third consecutive negative day being down 1.40%. Bitcoin was down almost 4.0% at some point but has recovered half the losses and it looks like it has further legs to the upside.
The focus will now switch to the Canadian CPI and US Retail Sales data both due in an hour.