EUR/USD in Thought Before the Meeting of Trump and Juncker
Euro and US dollar are trading lower, as markets expect the meeting between US President Donald Trump and European Commission President Jean-Claude Juncker. Ahead of the meeting, the EU Commission is preparing a rather long list of many American goods. It would be around $20 billion.
The global shares were mixed today. Japanese Nikkei gained 0.46%, Hong Kong HSI rose 0.90%, Singapore Strait Times was up 1.04%, China Shanghai SSE composite closed down slightly by -0.07%, at 2903.65. European stocks were mostly lower. FTSE fell by 0.85%, DAX was down -0.7% while CAC was nearly flat.
German business confidence dipped in July, suggesting a slew of risks, including the threat of US tariffs on cars and car parts, is starting to unsettle company executives in Europe's largest economy. The Ifo economic institute said its business climate index fell to 101.7 from 101.8 in June. Economists had expected a reading of 101.5. Current Assessment, on the other hand, grew by 0.2 to 105.3, above forecast of 105.1. Expectations index fell by 0.4 to 98.2, below forecast of 98.7.
The British pound grew moderately against the dollar, receiving support from data on approved applications for mortgages and the balance of retail sales. UK PM May’s comments provided an additional boost to the pound. Theresa May said that she will take control of Brexit negotiations.
UK mortgage approvals rose to 40.541 in June from 39.528 in May. This was the highest level since September 2017. The balance of retail sales from CBI fell to +20 in July from a nine-month high of +32, noting a slightly smaller drop than expected.