What will Drive FX Markets Today

EURUSD traders await today the German ZEW survey for June, as well as Eurozone’s final CPIs for May and trade balance for April. Analysts expect the current conditions and economic sentiment ZEW indices to have decline, while Eurozone’s final CPIs for May are expected to confirm their preliminary estimates. With regards to the bloc’s trade data, it is anticipated to show a narrowing surplus.

GBPUSD traders will watch the second round of the elimination process towards Theresa May’s replacement. Last week, Conservative MPs gave 114 votes to Boris Johnson, with Foreign Secretary Jeremy Hunt taking the second place with 43 votes. The last three contenders, Andrea Leadsom, Esther McVey and Mark Harper were eliminated. With 114 votes in support, Johnson would be extremely hard to be taken down from the first place and thus, it remains the most likely contestant to win this race. In our view, this keeps the probability of a no-deal Brexit decent.

In the North America calendar, the US building permits for May are coming out and consensus is for a minor increase.

The Federal Reserve policy meeting begins today with a decision and press conference tomorrow.