We can expect to get the Germany’s Ifo business climate, current conditions and expectations indicators (European session). After that, on Tuesday, we get the US consumer confidence and on Wednesday, we can expect to get the US GDP growth rate, France’s GDP growth rate and Canada’s current account balance (All for Q2).
After that, we can expect to see Germany’s unemployment data and HICP rate and Canada’s GDP growth rate (on Thursday). And finally, on the last day of the week – Friday, we expect to get Japan’s unemployment rate, China’s Mfg PMI, France’s CPI, Euro-zone’s inflation data and Euro-zone’s Unemployment rate.
United States and Mexico are close to a common stance on NAFTA. The negotiations are to restart today and we expect to see that they are only few hours away from two sides reaching a common position. On the other side, Canada is waiting for bilateral US-Mexican issues to be resolved. After that Canada should join discussion and the three sides could require further negotiations for a week. Depends on positive headlines and on the outcome of the issue, we should expect to see that the US Dollar get some support.
USD/MXN continued to trade in a sideways manner on testing the 18.92 resistance line. We could see the pair continuing to trade in a sideways manner today also. If the pair rises, it could break the 18.92 resistance line and aim for the 19.05 resistance hurdle. On the other side, we could see it breaking the 18.71 support line and aim for the 18.57 support barrier.
The US dollar remained soft during the last week. And also during Asian session. Regardless Powell’s speech, and his defending of the Fed’s current policy to raise interest rates ignoring president Trump’s recent criticism, US dollar remained soft. After Powell’s movements there should be expected a more hawkish signal. We could see the US dollar weakening.
EUR/USD rose on last week testing the 1.1623 resistance line, now turned to support and broke it (during the Asian session). The pair seems to be struggling with the prementioned support line and the upward trend line. We could see it reaching out for the 1.1675 resistance line and even breaching it. On the other side, we could see the pair breaking the 1.1623 support line and aim if not breach the 1.1537 support level.