On Wednesday, July 7, here’s everything you need to know:
After dismal US data and ahead of the FOMC Meeting Minutes, markets have calmed and the dollar is holding onto its gains. Despite optimistic circumstances, oil and gold are trading below their highs, while cryptocurrencies are rising. Job vacancies in the United States, EU Economic Forecasts, and current headlines are also being monitored.
Despite a significant drop in bond yields, the US dollar refused to fall. After the ISM Services Purchasing Managers’ Index fell to 60.1 in June, substantially more than predicted, yields on 10-year Treasuries fell to roughly 1.36 percent. The USD/JPY pair is the sole exception, as it has been dragged downward.
See What does a decline in yields ahead of the Fed’s minutes mean for the dollar?
Following Friday’s Nonfarm Payrolls report, concerns over the health of the US economy temporarily supplanted the optimistic atmosphere. The spotlight now switches to the minutes of the Federal Reserve’s June meeting. A robust economy and prospects of persistent inflation prompted the Fed to make a significant hawkish move at the time. The protocols could provide a more complex picture than the dollar-positive story that emerged from the three-week-old event.
Minutes of the June FOMC Preview: A look at the itinerary for Jackson Hole
The EUR/USD is trading lower after German Industrial Production fell by 0.3 percent, which was worse than forecast. The single currency was pulled down by mixed results from Germany’s ZEW organisation. The European Commission’s new economic forecasts will be the focus on Wednesday. Despite the spread of the Delta coronavirus, an upgrade is likely.
The European Central Bank is holding a strategic review meeting, which could result in adjustments to the Frankfurt-based institution’s inflation targeting, among other things.
Predictions for the ECB’s Special Meeting: There are three potential EUR/USD movers to keep an eye on.
Despite the British government’s request that practically all covid-related restrictions be lifted on July 19, the GBP/USD has been fighting with 1.38. Sterling is being weighed down by a dovish Bank of England and Brexit squabbles.
Gold has remained over $1,800 due to lower Treasury yields, but the surge has slowed. On Tuesday, the XAU/USD reached a high of $1,814 per ounce.
WTI Crude Oil is currently trading at $73, down from recent highs. The failure of OPEC+ discussions earlier this week was caused by a spat between Saudi Arabia and the United Arab Emirates. As a result, the group will not increase its output. Despite the ebb and flow of oil, the USD/CAD is trading over 1.24 ahead of the release of Canada’s Ivey PMI.
Cryptocurrencies have been steadily rising, though in narrower ranges. Bitcoin is trading around $35,000, while Ethereum is approaching $2,400. Shiba INU has a lot of promise:
More Shiba Inu has a bullish trend, and SHIB is expected to rise by 80%.
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