Summary:

  • Inflation miss exerts pressure on AUD valuation

  • Juncker meets Trump to discuss trade issues

  • Both precious and industrial metals are advancing

  • Oil trades mixed ahead of DOE data

  • Portuguese stocks outperform region peers

In the first half of the European session major stock indices from Western Europe moved modestly lower. However, it should be noted that the Portuguese equities are actually outperforming their region peers as PSI20 index is trading around 0.5% higher. Investors’ attention turns to the Washington where the European Commission President Juncker is scheduled to meet with the US President Trump to discuss trade issues. Australian dollar is the weakest G10 currency thanks to the disappointing inflation reading. On the other hand, CAD and CHF are gaining against all the other major. Precious and industrial metals are trading higher on the day while oil trades mixed with Brent gaining and WTI pulling back.

Coinbase, an American cryptocurrency exchange, has launched gift cards in Europe. Gift cards are linked with Coinbase wallets. They could be bought in Tesco, Carrefour, Costa and many others retailers. Gift cards have been available only in major European countries as of yet, for one United Kingdom, Spain, France, Italy and the Netherlands.

Silver prices, like other precious metals, have not performed well of late. Prices consolidated nearby $16,50 per ounce from February to June. During this period there were two jumps related to an increase of a risk aversion in the world, but those rises did not turn out sustained. Moving forward, prices failed to resist mounting selling pressure last month.

The ECB meeting is usually one of the most important events for the EURUSD. It was the case last time around when the Bank hammered hopes for the interest hike and the euro was hit hard. With the bar of expectations lowered substantially, can the Bank turn things around?

In its annual security report chief of the German intelligence, Hans-Georg Maassen, recognized the risks connected to the Chinese acquisitions of the German companies. Maassen highlighted that the Chinese purchases of the high-tech firms poses a potential threat to the national security of Germany.

The Australian dollar is by far the worst performing major currency in the morning being almost 0.3% down against the US dollar as of 6:37 am BST. This is a result of a bit disappointing headline inflation for the second quarter as  price growth came in at 2.1% in annual terms and fell short of the median estimate placed at 2.2%.