With the exception of Chinese trade data, the economic calendar on Wednesday features very little in the way of market moving events. That’s about to change in the second half of the week as the United States, United Kingdom and China release a fresh batch of economic figures.
The European session opens with a pair of low-volatility data releases in the form of French individual investment and Spanish industrial output. Neither event is expected to generate much activity in the currency markets.
In North America, the Mortgage Bankers Association (MBA) will release weekly mortgage applications data at 11:00 GMT. The release is not expected to move markets.
North of the border, the Canadian government will report on building permits at 12:30 GMT. Permits are forecast to rise 1% in June after falling 4.7% the month before.
In the United States, Federal Open Market Committee (FOMC) member Thomas Barkin is scheduled to deliver a speech at 12:45 GMT. Barkin and his colleagues are widely expected to vote in favor of raising the benchmark interest rate next month. The September rate announcement will be accompanied by a revised summary of economic projections covering GDP, unemployment and inflation.
In commodities, the US Energy Information Administration (EIA) will release its weekly crude inventory data for the period ending 30 July. Crude stockpiles are projected to fall by 3.4 million barrels following an unexpected gain of 3.8 million barrels the previous week.
EUR/USD
Europe’s common currency recovered lost ground on Tuesday, as the dollar fell against a basket of world peers. The EUR/USD exchange rate bounced from a low of 1.1545 at the beginning of the week to a high of 1.1609 on Tuesday. Despite the rally, the pair faces a bearish formation with immediate support located at the 28 June low of 1.1527. On the flipside, the pair is testing immediate resistance in the 1.1600-1.1620 range.
GBP/USD
Cable attempted a modest recovery on Tuesday before prices swung back to the 1.2940 region. GBP/USD has experienced a sharp downtrend since the beginning of the month, with prices falling more than 200 pips in the process. According to Commerzbank, cable could face renewed bearish pressure, which could knock prices all the way down to 1.2866.
USD/CAD
The USD/CAD exchange rate received a large boost on Monday, as the pair reclaimed the 1.300 handle following a volatile end to last week. The pair now sits at 1.3057, where it was down slightly from the previous close. In terms of technical indicators, the North American cross faces immediate support at 1.3000, followed by 1.2960.
