Although GBP/USD remains in a downtrend and USD continues to surge higher, British pounds start the week on a roll as it was boosted in Asia while risk bias follows from the positive take from Wall Street continues. It was supported today ahead of CPI data tomorrow.
There is so much anticipation against the CPI that tomorrow is expected to follow the Bloomberg survey at 9.1% annually. The Bank of England is scheduled to meet on the 4th of August to decide on rate hikes, which inflation data can influence.
APAC equities increased, session seeing all the major stock indices win. Joining APAC, Hong Kong’s Hang Seng Index (HSI) climbed over 2.5% on the back of possible stimulus being flagged in China. US equity futures leans towards positivity.
The commodity market moves higher, taking associated currencies on a ride. The West Texas Intermediate crude oil futures contract is trading just about US$ 98 bbl and the Brent contract near $ 102 bbl; gold is hovering around US$ 1716 an ounce at the time of going to print.
The associated currencies are AUD, CAD, NOK, and NZD.
The markets await Canadian housing starts, and the US Treasury International Capital (TIC) data is set to be released.
US bank earnings will also be watched this week as questions are worried about whether GBP/USD will continue to follow the bearish momentum.