European FX Open - EUR continues lower post-ECB

The USD starts the day broadly firmer after Fed's Daly said some recent inflation data has been 'really good' but the Bank hasn't yet achieved price stability.

Meanwhile, Bbg reports President Biden s grip on the Democratic presidential nomination appeared to be slipping yesterday, as he weighed increasingly public warnings from his party s top lawmakers while in isolation for a Covid infection. And, Donald Trump officially accepted the GOP nomination at his RNC speech. He described his assassination attempt as 'too painful to tell' and called for unity, tax cuts, and an end to foreign wars as well as pledging to end the illegal immigration crisis by 'closing our border and finishing the wall'.

Can the DXY USD Index end the week above 104.50-55, recent tops?

EUR/USD continued softer overnight after peaking in latest sessions at 1.0948 and 1.0941, opening around its day's lows after the ECB meet yesterday. The EURO mostly ticked lower after the ECB left rates unchanged, not pre-committing to a particular path.

Lagarde added a September decision is wide open; risks to growth tilted to downside and wage growth is developing in the right direction.

The UK's huge data week with retail sales, which are seen softer at -0.6%m/m in June vs 2.9% last. That makes sense given the unseasonably cold weather in early June and elevated mortgage rates and higher rents are continue to impact negatively on household budgets.

Also scheduled are the likes of German PPI and in the second half Canada retail sales (-0.6% m/m forecast for May).

Overnight, Japan national CPI missed expectations at 2.8% y/y in June, but the cores accelerated and will the data will likely spark continued speculation of a possible second BOJ hike at the end of the month.

On the central bank front, there is the ECB survey of professional forecasters this morning and Fed's Williams and Bostic in the afternoon.

Also on the news front, and official at the Central Financial and Economic Affairs Commission stated China will continue to promote economic growth and achieve a 'more balanced' development and Japan's Finance Minister Suzuki said he will present his views on a range of international topics including FX markets in Brazil, where he will attend G20 and G7 finance ministers meetings next week.

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