The second trading day of the 28th week of this year continued in a positive investor fashion, when on Monday, 6 July 2020, the stock market, especially in Europe and the USA, saw an increase in stock prices and major stock indices. The commodity market saw an increase in oil prices above US$ 40 per barrel, for both – Brent oil but also for West Texas Intermediate (WTI) crude oil. So far on 7 July the foreign exchange market has seen the USD strengthening.
On 7 July at 8:54 am CET, the EUR/USD currency pair traded on the Forex market at a mutual exchange rate of US$ 1.129 per EUR, with the daily weakening of the EUR by -0.133% of the exchange rate against the USD. The USD strengthened not only against the Euro, but also against the Japanese yen (JPY) that traded at a mutual exchange rate of JPY 107.57 per USD with the current daily strengthening of the USD by +0.2% against the JPY.
This week investors expect the following events to affect the business trend of the global financial market:
Eurogroup Members Meeting
Eurogroup meetings are usually held in Brussels and are attended by the President of the Eurogroup, the finance ministers of euro area nations, the Commissioner for Economic and Monetary Affairs and the President of the European Central Bank. They will discuss a number of financial issues, such as euro support mechanisms and government finances. Meetings are closed to the press, but officials usually talk to reporters throughout the day, and a formal statement regarding the meeting’s objectives may be issued at the end of the meetings.
The Eurogroup coordinates the economic policies of the 19 euro area member states and their initiatives and decisions can have a far-reaching impact on the economic health of the euro area.
The meeting will take place on Thursday 9 July 2020.
Unemployment in Canada – Monthly
The unemployment rate shows the number of unemployed persons compared to the working age population expressed as a percentage. The calculation is performed monthly. Unemployed are defined as people aged 15 to 74 who are currently not employed but are available for work and are actively looking for it. The growth of the indicator may have a negative effect on Canadian dollar quotations. The value of the index will be published on Friday, 10 July 2020 at 2:30 pm CET and is expected to decline from 13.7% to 12.5%.
US Producer Price Index – Monthly
This index measures the average change over time in the selling prices received by manufacturers. This is a major indicator of consumer inflation – when manufacturers charge more for their goods and services, higher costs are usually passed on to consumers. These data will be also published on Friday, 10 July 10 at 2:30 pm CET and are expected to increase by 0.1% compared to previous data.