No, not the sustained collaboration Troika between the European Commission (EC), European Central Bank (ECB) and the International Monetary Fund (IMF) that is overseeing the Greek Debt Bailout. While we feel the Greek Debt Bailout situation is still festering in the background on the IMF actually only funding its commitment once the European creditor nations agree much more extensive Greek debt relief, that is not the ‘troika’ of the moment.
The U.S. dollar is lower against the major pairs after the political uncertainty in Washington and mixed economic fundamentals took their toll on the greenback. The first week of August will be full of economic releases with major central banks on the agenda as well as the week wrapping up with the biggest economic indicator in the market, the United States Non-farm payrolls report.
Financial markets are set to open on a more downbeat note on Friday, with earnings from Amazon on Thursday being blamed for the initial underperformance along with the U.S. Senate’s inability to pass the “skinny repeal” of Obamacare.
U.S. futures are pointing to a stronger open on Thursday, with the NASDAQ seen leading the way boosted by earnings from Facebook as we await results from a number of other companies on what is likely to be one of the biggest days of earnings reports this year.
It should be an interesting day for markets on Wednesday, with the UK releasing data on second quarter growth this morning, the US Federal Reserve announcing its latest decision this evening and crude inventory data being released after API reported a substantial reduction.
Following last week’s relatively heavy losses, crude prices rallied yesterday and both oil contracts were sharply higher again today with Brent trading around $49.50 per barrel and WTI almost at $48.20 at the time of this writing. Sentiment on the oil market turned positive when Saudi Arabia’s energy minister announced yesterday that his country's oil exports will be reduced by a good 600 thousand barrels per day in August to 6.6 million bpd.