With dovish comments from Bank of England Governor Carney dragging the pound down during the initial week. Sellers seem to be congregating around the 1.2590 against the dollar on the back of an overall weak USD and next to no fresh headlines for the UK.
PMI data continues to flash red signals to policymakers, which could possibly have been the reason as to why Governor Carney decided to portray a more downside view on the economy during his speech yesterday.
The Dollar slipped slightly yesterday as trade optimism faded and investors looked ahead to Friday's jobs report. These figures are projected to show Non-farm payrolls rose by 164,000 in June, rebounding from a steep decline in May. if the numbers disappoint again, a rate cut could be on the cards at the Federal Reserve Systems next meeting.
The Euro consolidated in the lower end of the weekly range around 1.1280 as market participants continue to adjust to the possible appointment of Christine Legarde to succeed Current European Central Bank President Draghi at the End of October.
In addition, the Euro is driving further downside pressure after yields of the German benchmark ten-year bund are trading at all-time lows.
Data to watch:
01:30 AUD Trade Balance (May)
01:30 AUD Exports (May)
01:30 AUD Building Permits (MoM) (May)
01:45 CNY Caixin Services PMI (Jun)
08:00 EUR Markit PMI Composite (Jun)
08:30 GBP Markit Services PMI (Jun)
12:15 USD ADP Employment Change (Jun)
12:15 GBP BoE's Broadbent speech
12:30 USD Trade Balance (May)
12:30 USD Continuing Jobless Claims (Jun 21)
12:30 USD Initial Jobless Claims (Jun 28)
12:30 USD Initial Jobless Claims 4-week average (Jun 28)
12:30 CAD International Merchandise Trade (May)
13:45 USD Markit PMI Composite (Jun)
13:45 USD Markit Services PMI (Jun)
14:00 USD ISM Non-Manufacturing PMI (Jun)
14:00 USD Factory Orders (MoM) (May)
23:50 JPY Foreign Investment in Japan Stocks (Jun 28)
23:50 JPY Foreign Bond Investment (Jun 28)
Posted in Daily Market News on Jul 3 2019