July 03, 2024 at 05:37AM
The dollar remains in a decent spot on the week but major currencies are not really doing a whole lot. It is only the Japanese yen that is seen weakening mostly, with USD/JPY keeping at 161.60 levels currently. The pair is up 0.5% on the week thus far and is on course for a fourth straight week of gains.
In the equities space, US stocks continue to track higher with tech shares leading the charge once more. The July omen is off to a good start at least but there’s the key hurdle of the US jobs report still to come. In Europe, the situation is less enthused though as French politics is still in the spotlight ahead of the weekend.
Looking to the session ahead, there might not be a whole lot to work with once more. The overall risk mood remains more tepid today while major currencies are not showing too much appetite.
EUR/USD is still largely caught in between key option expiries on the week, with more to follow on Friday as well. That is likely to keep price action more muted in between 1.0700 and 1.0800. As such, don’t expect much from the PMI data today. In any case, they are final readings so they aren’t usually too noteworthy.
In the UK, it’s all about the general election tomorrow but the outcome is more or less decided. Labour is the strong favourite to secure landslide victory. The key number to watch in terms of seats in the House of Commons is 326. And Labour is expected to win anything north of that up until 470 seats even. So, a very comfortable one.
0715 GMT – Spain June services, composite PMI0745 GMT – Italy June services, composite PMI0750 GMT – France June final services, composite PMI0755 GMT – Germany June final services, composite PMI0800 GMT – Eurozone June final services, composite PMI0830 GMT – UK June final services, composite PMI0900 GMT – Eurozone May PPI figures1100 GMT – US MBA mortgage applications w.e. 28 June
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
2 – Donyell Malen is the first player to score a brace in this year’s Euros. Memorable.
This article was written by Justin Low at www.forexlive.com.
