Forex Today: Markets Await Preliminary German Inflation Data - 30 July 2024

Before the three major central bank meetings take place later this week, the market will be focused on German inflation data which will be released today.

  1. It has been a quiet start to the week after a thin Monday with no real market data to speak of. Markets moved little. Today the focus will be on German CPI (inflation) data first, which is expected to show a higher month-on-month increase of 0.3%. If the rate is notably higher, it might boost the Euro. After that, focus will shift to the USA, which is releasing data on JOLTS Job Openings and CB Consumer Confidence.
  2. Stock markets have mostly traded lower today, with losses seen in major Asian indices. Both the Nikkei 225 Index and the HSI are down on the day.
  3. Some big tech earnings releases which are due this week could be important for the performance of the NASDAQ 100 Index, which has recently underperformed broader market indices.
  4. In the Forex market, since today’s Tokyo open, the New Zealand Dollar has been the strongest major currency, while the Japanese Yen has been the weakest. I did expect in my latest weekly Forex forecast that the NZD/JPY currency cross, and some other Yen crosses also, will rise in value over this week – so far, I have been correct.
  5. Bitcoin dropped sharply in recent hours after it traded at a 6-week high, turning bearish at the round number of $70,000.

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