The euro slipped against a broadly stronger dollar on Tuesday, amid expectations that the monetary policy message emerging from the ECB at a central bank conference this week will be a cautious one.
Friday’s speech by European Central Bank President Mario Draghi is among the set-piece events at the Jackson Hole symposium, where remarks by his Federal Reserve counterpart Janet Yellen on the same day will be the main focus.
“The euro has become slightly vulnerable after the recent rise and unless Draghi comes out and says anything significant, we expect the currency to remain under pressure,” said Piotr Matys, an FX strategist at Rabobank in London.
By Saikat Chatterjee
Oil prices were higher on Tuesday, bouncing back from the prior session’s more than 2% drop as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.
Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (2030GMT).
Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of around 3.4 million barrels, which would mark an eighth weekly decline in a row
Britain unexpectedly posted its first budget surplus for any July since 2002, boosted by strong income tax payments, according to official data on Tuesday.
The surplus in July stood at 184 million pounds, compared with last year’s 308 million pound deficit, the Office for National Statistics said, citing figures that exclude state-controlled banks.
The figures were boosted by a 10.6 percent year-on-year rise in self-assessed income tax receipts in July, a month that often sees a spike in these returns.
Historically, July has been a strong month for corporation tax receipts too, although these fell slightly compared with a year ago.
This reflected new methodology introduced in the current financial year that smooths out corporation tax revenues over the year.
Ford Motor (N:F) is exploring setting up a joint venture with Chinese firm Anhui Zotye Automobile Co (SZ:000980) to build electric passenger vehicles in China under a new brand, tapping into a boom for such vehicles in the world’s top auto market.
China, struggling with alarming pollution levels in major cities, is aggressively pushing plug-in vehicles and has poured in tens of billions in investment, research funding and subsidies, drawing many new automakers to launch projects.
By Brenda Goh