Tuesday is quiet day in terms of data – with no high impact events for neither European Union, UK nor the US. With that considered, we have seen a slight USD strength in the morning.
Percentages for the Democratic party’s preferred candidate running the presidential election has increased for Kamala Harris. Seeing USD gain some points as its looks likely for less uncertainty politically moving forward.
North America is being the main driver for the rest of the week with Canada’s interest rate decision for tomorrow, expected to lower their borrowing costs for a second time by 25 basis points. CAD has already seen head winds since their last rate cut, GBP/CAD gained 1.9% in since the 5th of June. Could we see additional momentum for currency peers taking advantages on CAD?
On Thursday we have durable goods and GDP growth rate for the US, both expected to decline slightly in June. This will then be followed on Friday by the very anticipated core PCE and PCE index numbers from the US. This data is also expected to fall in June. We have seen a trajectory for the US economy starting to slow down. If we would see a bigger slowdown than expected, could we see USD weakness on speculation of a potential additional rate cut being planned from the Federal Reserve?
