Attention turns to Europe

July 3, 2020

The Independence Day holiday in the US has ensured that the focus shifts elsewhere, with Europe publishing a host of data.

The EURUSD opened Thursday at $1.12502 and was steady early, before climbing mid-session to a high of $1.13020. Those highs were given up quickly as it fell to lows of $1.12223 late in the day. It has come off those lows slightly and is now trading at $1.12328. The GBPUSD followed a similar path to the euro after beginning the day at $1.24739. After a period of flat trading early, the pound lifted to highs of $1.25289 mid-session. The pound fell away shortly thereafter, hitting lows of $1.24546 late. It is not far from those lows, currently trading at $1.24592.

The Dow made some solid gains overnight on the back of record jobs numbers from June, but a pullback late in the day tempered some of that exuberance. The index started the day at 25,674.30 and slipped to lows of 25,637.19 early. It began posting decent gains soon after before accelerating when the jobs figures were released, peaking at 26,209.45. A sharp sell-off ensued as the Dow fell as low as 25,769.91. It is now trading at 25,869.01. The Dax followed the Dow’s lead for most of the session but was lucky enough not to suffer the same sell-off late in the day. The German index opened at 12,234.77 and dipped to lows of 12,230.28 early. It rallied off those lows as it surged to a late high of 12,660.70. It has come off those highs slightly and is now trading at 12,587.60.

The day ahead sees the publication of a stack of data, particularly from Europe. The continent will be releasing a several pieces of PMI data as markets continue to look for “green shoots” as countries re-emerge form worldwide lockdowns.

Data published today includes:

Australia – Retail Sales

China – Caixin Manufacturing PMI

UK – Final Services PMI

Europe – German Final Manufacturing PMI, European and French Final Services PMIs, Italian and Spanish Services PMIs, French Government Budget Balance, ECB President Christine Legarde speaks


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