The euro has found a foothold just below the $1.16 level, having recouped almost half of last week’s losses following Friday’s NFP report. Now that the US-EU trade deal has been struck, focus among market participants will very much turn to how the tariffs are set to impact the common bloc’s economy.
Tuesday’s PMI figures were revised modestly downwards, but this covers July and we will have to wait until 23rd August for the first activity data covering the post-trade deal period.
Retail sales figures for June will be out later this morning. Other than that, the economic calendar is rather bare this week, so expect the euro to be driven be US developments, particularly continued speculation surrounding the identity of the next FOMC chair.
