“The Trump administration will propose raising to 25 percent its planned 10 percent tariffs on $200 billion in Chinese imports, a move that would ratchet up pressure on Beijing to return to the negotiating table, three people familiar with the internal deliberations said.”
-source: Bloomberg
USDJPY, AUDUSD, NZDUSD lower, USDCNH jumped higher by 200 points.
Extremely busy/important schedule for the end of July/beginning of August week with Bank of Japan, U.S.Federal Reserve Board, Reserve Bank of India and Bank of England are having monetary policy meeting, then U.S.Labor data to be released on Friday August 3.
European Central Bank Monetary policy meeting kept official interest rates and policy unchanged this morning, below the summary of president Draghi’s press conference;
EURUSD traded lower to mid 1.16
Somewhat light event/economic data schedule for July 23 week after G20 Finance Minsters & Central Bank Governors meeting in Buenos Aires, Argentina over the weekend.
ECB meeting on Thursday expected to keep rates unchanged.
Econ data release for the week of July 16,
There will be a G20 meeting of Finance ministers and Central Bank Governors in Buenos Aires, Argentina on July 21 and 22.
Bank of Canada raised its official interest rate by 25bp to 1.50% as expected.
Not much change in the statement except for some lines mentioning about increasing risk from trade tensions.
$CAD dropped to 1.3065 low before recovering all the way back up to mid 1.31, BOC Governor Poloz press conference also reiterated trade tensions and NAFTA uncertainties.
Bank of Canada is expected to raise its official rate by 25bp this Wednesday, OIS market has priced in 91% chance of a 25bp hike.
Thursday’s US June CPI could see some stronger reading on the back of recent higher Oil price, while core CPI is expected to be +0.2% mom.
FOMC Minutes from June meeting is out, modestly hawkish tone overall;
Quite a busy week except Wednesday July 4th US holiday,
Main focus should be US NFP number on Friday, market forecasting 198k NFP and 3.8% unemployment rate.
ECB left rates unchanged as expected, announced tapering from October to December then end QE by the end of December.
ECB President Draghi’s press conference were more dovish with main comments below;
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