Market Brief 1 August: Busy Tuesday Ahead
Hello Traders! It looks like we’re going to have an action-packed day today. Let’s see what’s on the calendar.
Switzerland – All day National Holiday
CNY and AUD 02:45 a.m. GMT +1 Caixin Manufacturing PMI (Jul) – analyst expectations are for no change at 50.4 for the month of July. A higher than expected result should boost the CNY and the Australian dollar respectively. However, if the result comes out markedly lower, this would weaken the CNY and the Aussie as well.
AUD 05:30 a.m. GMT +1 RBA Interest Rate Decision (Aug) – the forecast is for no change and for the rate to remain at 1.50%. This is one of the most volatile times in the market and it creates opportunities for trading as well as risks. If the rate gets increased, this should be read as a bullish sign for the currency. On the other hand, if there is a rate cut, this should be seen as a bearish sign for the Aussie.
08:55 a.m. German Manufacturing PMI (Jul) – expectations are for no change in manufacturing performance of the strongest economy in the Euro Zone. Numbers are projected to stay at 58.3, same as last time. If there is better than expected reading, this should strengthen the euro even further. However, if we get bad news and a much lower result, this should devalue the currency.
08:55 a.m. GMT +1 German Unemployment Change (Jul)– projections are for – 5 K for the month of July versus 7K for the previous period. If the report comes out lower than expected, this should be a boosting sign for the euro. Conversely, if the news is a lot higher number, this should drive down the value of the currency.
GBP 09:30 a.m. Manufacturing PMI (Jul) – there is an expected increase in manufacturing activity for the U.K. at 54.4 for the month of July vs. 54.3. If we get even better numbers than those projected, this should increase the value of the pound. If manufacturing activity has dropped below projections, this should be seen as a weakening sign.
USD 15:00 p.m. GMT +1, ISM Manufacturing PMI (Jul) – this is an extremely important index since it concerns the largest economy in the world. Expectations are for a decrease in manufacturing at 56.5 for July versus 57.8 for the previous period. If we see actual news coming out lower than expectations, this will further drag the value of the dollar down.
Wishing you Happy and Successful Trading!
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