Investinglive European FX news wrap: Another sluggish day amid lack of key events
- BOE governor Bailey: Short dollar is now the most crowded trade in the market
- BOE governor Bailey: UK experience on yield curve is not out of line with other markets
- The waiting game continues
- Fed chair Powell to speak later in the day but..
- Dollar weakened by drop yesterday as short squeeze loses momentum
- BoJ is said to leave benchmark rate unchanged next week
- What are the main events for today?
- FX option expiries for 22 July 10am New York cut
- Japan trade negotiator says continuing to seek common ground on tariff issues with the US
- A limited trade deal between the US and India is reportedly ruled out before 1 August
It's been another sluggish session today given the lack of tier one data releases and limited newsflow. The only notable headlines were the Japanese trade negotiator saying that they keep seeking common ground on tariffs with the US and BoE's Governor Bailey mentioning that the "short US dollar" is now the most crowded trade.
This is all well known stuff and obviously didn't move the markets. We keep on going on by inertia waiting for some meaningful development on the tariffs or interest rates front. For now, it's all kind of dormant.
The US session will likely have the same fate given that we will just get the US Richmond Fed Manufacturing index. This is a volatile low tier indicator and rarely market-moving. There's also Fed Chair Powell speaking but given that we are in the blackout period, he won't comment on monetary policy.