Brexit Focus

After Prime Minister Theresa plans to keep close trade ties with the European Union, the UK politic seems to have lots of uncertainties as ministers resign and conflict of different opinions appears. This factor pressures pound to fall lower. I think the United Kingdom’s political uncertainty may continue pull pound lower than 1.3200 dollar. While ECB chair is still confident of the strong economic growth and inflation growth under ECB monetary policy, euro held steady above 1.1700 dollar on Tuesday. EUR/USD may rise back, if it can rise back to 1.1750 points.
This week investors may less be focused on trade war between the United States and China but concentrate their attention on the U.S. economic data especially inflation. If U.S. inflation decreases, investors may increase the confidence that Fed may hike interest rate slowly. In contrast, analysts forecast that Bank of Canada may rise the interest rate from 1.25% to 1.5% that may support Canadian dollar hold steady in long term. USD/CAD may fall lower than 1.3100 points to 1.300 points, if U.S. dollar is weaker.

Economic indices in focus:
• Europe: ECB President Draghi Speaks at 14.00 p.m.
• USA: OPEC monthly report at 18.20 p.m., Core PPI and PPI (Jun) at 19.30 p.m. and Crude oil inventories at 21.30 p.m.
• Canada: BoC interest rate decision and monetary policy report at 21.00 p.m. and BoC press conference at 22.15 p.m.
• UK: BoE Gov Carney speaks at 22.35 p.m.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review