According to Francesco Pesole, FX Strategist at ING, US banks and tech companies are scheduled to report earnings this week, which could inevitably test the prevailing risk-on mood and have an impact on the FX markets.

“Mixed Chinese data failed to set a clear tone for global market sentiment overnight. While GDP growth decelerated to multi-decade lows, retail sales, industrial production and fixed asset investment managed to beat estimates in June. Overall, it seems that more time is needed to fully assess the impact of trade wars on the Chinese economy and for now, markets can preserve the risk-on mood. This mood will inevitably be tested this week as the US corporate earnings season kicks in. Particular attention will be on major US banks today and tomorrow - along with some tech giants - with any surprise likely to reverberate in the FX market as well. Today’s calendar in the US includes the New York manufacturing survey, which should recover from the sharp drop in June. Some focus will also be on a speech by NY Fed President John Williams. We see limited market-moving potential from his comments and expect the dollar to stay broadly range-bound today.”