Monday’s News Briefs

Trading in the United States.
Because of the Independence Day holiday, trading in the United States on Monday will be abbreviated and inactive. Nevertheless, on Monday at 2:00 pm GMT, the June PMI number, which is still mirroring a positive consensus forecast, will be released. If the number is up, the US dollar will get a little support because an index above 50 and a rising trend point to economic growth. The consensus forecast is 55 against 54.9 a month earlier.

Japanese sentiment in the industrial and non-industrial sectors on the basis of the sentiment of major companies. In both cases the consensus forecasts are fairly high, and this can be seen as a factor in the strengthening of the Japanese yen. If the forecast proves correct, the USD/JPY pair will fall, as may the Nikkei 225 because of the strengthening of the Japanese national currency. The data will come out at 11:50 pm GMT.

Germany’s June industrial PMI.
Numbers above 50 always indicate that manufacturing is expanding, but this time the forecast matches the previous number (59.3). Nevertheless, the past news for Germany beat expectations, despite negative forecasts. It therefore makes sense to expect additional volatility in pairs that include the euro, including the EUR/USD. If the number does beat expectations, the EUR/USD pair will get a boost upward. The data will come out at 7:55 am GMT.

The UK’s June industrial PMI.
The forecast is for a reduction to 56.4 from 56.7, which may contribute to a drop in the pound sterling. The GBP/USD pair is overbought, so it might edge downward if the current prediction is correct. A decline in the pound will lead to a slight rise in the FTSE 100, which is reacting aggressively to the pound sterling’s current overbought status. The data will come out at 8:30 am GMT.

The oil market.
On Monday, the market will trade on Friday’s data on the number of rigs from Baker Hughes. It is also worth noting the abbreviated trading in the United States because of the holidays, which may locally affect the cost of a barrel of Brent.

Yuri Prokudin, Olymp Trade analyst.

Olymp Trade Review