Major currencies have done little today, with the Euro, Sterling and Australian and New Zealand Dollars trading near the same levels versus the US Dollar they were over the weekend. The Euro, which has continued to slowly grind higher in recent weeks, may see some action in the next 48 hours with European Commission President Jean-Claude Juncker due to meet US President Trump tomorrow in Washington with global trade at the top of the agenda.
EU officials have already downplayed the odds of the EU and US reaching an agreement which would see recently introduced import tariffs removed and precedent suggests that President Trump may blow hot and cold about the prospect of the US introducing tariffs on automobile imports from the EU. On Thursday the European Central Bank holds its policy meeting and while it is unlikely to get the kind of attention it did back in June when it announced a tapered end to Quantitative Easing markets will focus on whether the ECB is even willing to contemplate rate hikes as early as summer 2019. This seems unlikely at this juncture, given little evidence that Eurozone GDP growth picked up in Q2 or early Q3, and this may slightly disappoint Euro-bulls.
