The start of the new week has been sluggish as major currencies remain in tight ranges, but apart from that, caution is warranted as USD/JPY continues to move towards the 160.00 threshold again, which could see Japanese authorities step in to halt any further weakening of the yen, at least for now.
After a strong central bank trade this month, next week is likely to be a bit quieter. That said, month-end flows will start to come into focus later in the week, which could cause some confusion before we move into July trading.
As for today, there isn’t much on the agenda to really shake things up. The highlight is the German Ifo economic survey for June, which has not been a significant release for some time. The German economy is stagnating towards the end of the second quarter and the report should reflect that very well.
Therefore, the overall risk mood will be one of the most influential factors in trading sentiment at the start of the week.
0800 GMT – Germany June Ifo Business Sentiment Index
0800 GMT – June 21st SNB Total Current Account Balance
1000 GMT – UK June CBI Trend Total Orders
That’s all for the next few sessions. I wish you all the best in the coming days and good luck with your trading. Take care.
