The dollar traded mostly higher against the major currencies at the start of the week, pushing the euro beneath the 1.26-level while pressuring the British pound lower towards the 1.50-mark. Amid a quiet session, the US equity indexes were largely flat as traders proceed cautiously ahead of the Q2 earnings season. Crude oil remained under pressure throughout New York trading, slumping by more than 1.3% to just above the $75.10-mark.
In addition to a barrage of US corporate earnings releases in the coming week, markets will also focus on the economic calendar. The key releases consist of the May trade deficit, June retail sales, May business inventories, the minutes of the FOMC meeting, June producer prices, weekly jobless claims, June industrial production, capacity utilization, July Philadelphia Fed manufacturing index, June consumer prices, the May net TIC flow and the July University of Michigan consumer confidence survey.
Pound Remains under Pressure
The sterling came under selling pressure against the dollar, sliding to 1.4950 before recovering back above the 1.50-mark in North American trading. Data released overnight from the UK was largely on par with consensus estimates. The final reading for Q1 GDP held steady at 0.3% on a quarterly basis, while posting a 0.2% decline on an annualized basis.
Cable will encounter support on the downside around 1.50-figure, with additional floors to emerge at 1.4950 and 1.49. Subsequent floors are seen at 1.4860, backed by 1.4830 and 1.48. On the topside, resistance starts at 1.5080, followed by 1.51 and 1.5140. Further gains will target 1.5175 and 1.52.