Summary:

  • ECB decision and Draghi conference in the spotlight

  • Durable goods orders to tick higher in June

  • Amazon expected to report $53.3 billion revenue

Taking a look at the economic calendar on Thursday one can notice that there are not many relevant readings and events scheduled for today. However, we definitely cannot say that it will be a boring day! Key event of a day will take place in just few hours as Mario Draghi and his ECB colleagues will make interest rate decision. Apart from that, some data from the US economy will be released in the early afternoon.

12:45 pm BST – ECB interest rate decision. Despite the announcement of the end of the QE programme the common currency did not benefit from the latest ECB meeting. This is because the Bank stated that the rates will remain unchanged until at least summer next year. The latest remarks from ECB members suggest that any rate hike will be data-dependant. Having that in mind, investors will stay cautious during the press conference (1:30 pm BST) to see whether Draghi has recognized the latest PMIs released two days ago. Our preview of the event is available here.

1:30 pm BST – US, Durable Goods Orders and Wholesale Inventories for June. It has been already several months since we saw the US wholesale inventories shrink last time. This may suggest that the demand in the US economy is weakening as wholesalers find it hard to decrease the stock. Moreover, we saw declining value of the durable goods orders in the past two months hinting that the Trade Wars may be slowly taking its toll on the economy. Today’s preliminary readings for June expected to show smaller than previous build in the inventories as well as major uptick in the value of durable goods orders.

Notable US companies reporting earnings today:

  • McDonald’s Corp (MCD.US)

  • Intel Corp (INTC.US)

  • Valero Energy Corp (VLO.US)

  • Starbucks Corp (SBUX.US)

  • Mastercard (MA.US)

  • Amazon (AMZN.US)

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EURUSD has broken above the resistance level at 1.1710 and is now approaching the resistance zone ranging 1.1760-1.1850. A hawkish EBC combined with lacklustre US data could push the pair much higher. However, in case the central bank disappoints we may see EURUSD pulling back to the previous consolidation range (1.1510-1.1710). Source: xStation5