Lagarde does little to stir the pot - A.......>

FOREX: Lagarde does little to stir the pot

- A stellar US retail sales release added some further evidence for a V-shaped

recovery in the US, with the retail index surpassing the 2020 peak. The USD saw

little support however, after a bounce from the overnight lows in the USD index

faded well ahead of the London close.

- The ECB press conference came and went with little consequence. The bank kept

policy rates and the PEPP program unchanged, alongside expectations, with the

subsequent press conference doing little to stir market activity. EUR/USD faded

on approach into the Wednesday high at $1.1452, keeping the technical picture

unchanged. CAD was the weakest in G10 after a spell of sharp strength into the

Wednesday close was partially reversed.

- The data schedule is slightly quieter Friday, with just US housing

starts/building permits and the prelim Uni. of Michigan data for July on the

docket. Speakers include ECB's Schnabel & de Guindos and BoE's Bailey. Some

attention will also likely be paid to earnings from State Street and BlackRock

and the ongoing EU Summit.