The European Central Bank (ECB) may have to suffer a mild recession, according to the Governing Council member Robert Holzmann, who made the statement yesterday evening.
This comes before the Federal Reserve meeting scheduled for July 27, when rates are expected to rise by 75 basis points. Aside from the fact that Treasury yields are decreasing throughout the curve, the US dollar is stagnant before the meeting.
After a dismal Wall Street lead at last week’s end, all APAC equity markets are down this week. Risk assets had a decline in value during the Asian session today due to the lackluster US data of July 22, an increase in Covid cases around Asia, and what seems to be the everlasting Chinese property problems.
According to sources, the 12 biggest Chinese developers will receive assistance from a bailout fund that the Chinese government intends to create.
As the race for the position of next prime minister of the United Kingdom intensifies among Liz Truss, Foreign Secretary, and Rishi Sunak, the former Chancellor of the Exchequer, the British pound remained stable.
The day started out badly for Aussie and Kiwi, but they were able to make up losses accordingly. The price of gold is stable at around $1,727/oz, but copper is falling on the LME.
The price of crude oil has decreased, with the Brent futures contract trading at about US$ 102 bbl and the WTI futures contract changing hands at about US$ 94 bbl.
Later in the day, US economic statistics will come from the Chicago and Dallas Feds, following the German IFO figures.
Since July 19, the EUR/USD has been stuck in a range between 1.0120 (potential resistance) and 1.0270 (potential support).