In Asia today, the focus of news from China-recent strict measures taken by the state concerning large banks and private companies to contain risky borrowings abroad, led to riots in the financial sector. The active sale of shares continues, and the head of the Commission on the Regulation of Banking Activities of China Guo Shuking announced his likely resignation. Such a development could lead to a rapid fall in the national currency. Nevertheless, the companies that touched on the above-mentioned events are trying to calm investors by noting that these are only standard procedures, the purpose of which is to ensure the security of the national currency.
In the commodity market, oil traded less than $ 45 per barrel, and this is the lowest price this year. If the oil race continues, traders will lose faith in the leading commodity and keep their investments: as a result, the price may drop to $ 44. On the other hand, the US has developed active drilling activities and proved that they are more than able to compete in the market at a raw material cost of $ 50 per barrel. If investors regain their former confidence, the price may rise to $ 47. This is not $ 50, but a fairly good indicator for the US dollar.
In the UK, Teresa Mei invited EU citizens to stay in the UK after Brexit, which somewhat worsened the situation, tense due to the country’s withdrawal from the EU. Perhaps, this is one of the best news in the eurozone in recent years, as it promises a potential recovery of the pound sterling. But until the Prime Minister’s statement receives confirmation and the corresponding decision is not made in the parliament, the pound sterling will be traded with negative dynamics, as a result of the negative influence of Brexit.
Germany will issue the IFO Business Climate Index, which will demonstrate the real state of the country’s business sector. A positive indicator indicates a positive direction of the euro, while the result is lower than expected, it is likely to negatively affect the exchange rate.
In the United States, the attention of traders will focus on the Basic Orders for durable goods (m / m). Last month, the report showed a decline of 0.7%. If the negative dynamics persists, the consequences for the US dollar will be disappointing. Nevertheless: the indicator of the past period was the lowest in the year, therefore, appropriate measures could be taken to improve the result this month. The positive report will positively affect the US dollar.
ECB President Mario Draghi will address the most important topics to date, including the current status of the euro, and forecasts for the future. In Europe, Mario Draghi has the greatest influence on markets: his comments, whether positive or negative, are correspondingly reflected in the course of the European currency.