- Lack of US session would impact trading volume
- Euro trades in a sideway pattern while sterling breaks its downward trend line
Investors over in the US are going to appreciate their public holiday and traders over in the U.K. may still be in the celebration mode after England’s clinical finish in a football match yesterday. The overall volume in the market would remain subsided due to the lack of trading participation from the US side.
Wall Street finished lower yesterday as the trade war saga continues to dampen the investor appetite. Having said this, investors over in Europe are feeling much calmer given that Merkel has avoided a political disaster and agreed on the immigration deal. However, the scepticism remains and the question is; if the current deal will hold?
On the data front, investors would like to see more encouraging signs. The services PMI data for France, Spain, Italy and Europe is due and it would likely move the needle for the euro-dollar pair. In terms of range, the price is very much consolidating between 1.15 to 1.17 since mid June. we need to break out of this zone, to form a trading range.
Bank in the UK, Theresa May faces a fresh showdown and her pro-Brexit colleagues are pushing her to support the agenda that the UK would be closely tied to EU rules for trading goods after Brexit. May, on the other hand, would prefer to have a mutual understanding of regulations, a task which is easier to think than implement, rather than following EU rules. By looking at the sterling-dollar pair, the price has broken its downward trend and this could be start of a new trend.
