Market Overview 2018-07-17

The EUR/USD is trading just north of the 1.1700 major technical level ahead of a Tuesday that will see market focus shift to upcoming US events with a thin calendar slated for the European session. There were some relevant macroeconomic news coming from both shores of the Atlantic, although they had little saying on price action. In the EU, the goods trade balance surplus shrunk in May to €16.5B amid a fall in exports combined with an increase in imports. The US released June retail sales, which were up by 0.5% as expected, while the control group reading remained pat.

On a positive note, May's readings were revised higher, offsetting the poor headlines, while the NY Empire State Manufacturing Index came in at 22.6, better than the 22.0 expected. This Tuesday, market's attention will center on Fed's Powell testimony before the Senate Banking Committee and any clue he can give of future monetary policy decisions. The EU won't publish macro news, while the US will release June Industrial production and Capacity Utilization expected better than May's numbers. 

The GBP/USD is still trading into 1.3250 after failing to make headway into the key 1.33 major figure on Monday. Brexit continues to spin out into a political mess, and the back-and-forth between leavers and the stayers is still dragging on the GBP. The Chequers deal that cost the resignation of two major political figures, came under scrutiny, with the House of Commons determined to wreck UK PM May's plan. However, a spokesman from Number 10 said that the government would accept amendments put forward by pro-Brexit lawmakers, as they are consistent with the White Paper. This Tuesday, the UK will release its latest employment data, which includes wages' growth for the three months to May. Average hourly earnings excluding bonus are expected to have risen by 2.5% while excluding bonus are seen up by 2.7%. The unemployment rate for the same period is expected to remain unchanged at 4.2%. -FXStreet.com 

Source : Exclusive morning call from FXCC, Tuesday, 2018-07-17, 07:00 GMT