Monday July 18th is set to be a very light day, with the focus late at night on the RBA monetary policy meeting minutes.
Since the last meeting, when the central bank left interest rates unchanged at 1.75%, the AUD/USD has soared once again above the 0.7600 mark, and is heading towards the 0.7834 level last reached in April. A stronger Australian dollar could be detrimental for the Aussie economy, and the policy minutes could signal the chance of an interest rate cut in August.
On Tuesday all eyes will be on British inflationary data, with the release of June’s CPI figures in the morning. The BoE has already indicated the need for fresh information to work out the situation of the country following the Brexit referendum decision. On the back of Tuesday’s data releases cable will likely be under pressure. On Wednesday, again we’ll see more important data from the UK, with the unemployment change and the average earnings index.
On Thursday, UK retail sales will kick start the trading day, but the main focus is on the ECB monetary policy decision and comments made by ECB President Mario Draghi in the press conference which will follow. The EUR/USD moved above the 1.1100 mark in the week just passed, so the next resistance is seen at 1.1200 then 1.1360.
Finally, the week closes with manufacturing and services PMI data from German, France and the Eurozone.