US in spotlight again as markets give up recent gains

July 10, 2020

Plenty of volatility overnight as markets were belted across the board.

Major currencies struggled yesterday, not helped by a strengthening USD. The EURUSD opened the day at $1.13259 and climbed early, hitting $1.13701 mid-session. Those highs were given up quickly as the euro fell to lows of $1.12797 late in the day. The struggles continue, with the pair currently trading at $1.12759. The GBPUSD followed a similar path to its European counterpart after opening at $1.26079. The pound dipped to a low of $1.25903 in the opening hour before bouncing back and climbing to a mid-session high of $1.26695. It gave up most of those gains late in the day, ending the session at $1.26051. It has fallen further in early Friday trading and is now sitting at $1.25936.

Indices were hammered overnight, with the Dow copping the brunt of the sell-off. The index began the day at 26,127.46 and ticked up to a high of 26,150.40 in the opening hour of the session. The declines set in shortly afterwards and accelerated sharply heading into late-session trading. The Dow tumbled to lows of 25,517.21 before bouncing back and regaining some of those losses. It is now trading at 25,684.81. The Dax looked like it was going to punch out some positive numbers until being weighed down by the Dow. The German index began the day at 12,619.07 and made some small gains, peaking at 12,704.59 mid-session. The sell-off started shortly after hitting that peak, as the Dax plummeted to lows of 12,439.59. It pegged back some of those losses and is now trading at 12,562.96.

The day ahead sees the release of a few pieces of data, while Friday’s are notorious for volatility as another trading week draws to a close. The US will be publishing PPI and Core PPI figures later tonight. Analysts are expecting the PPI figure to increase by 0.4%, while Core PPI is tipped to rise by 0.1%.

Other data released today includes:

UK – CB Leading Index

Canada – Employment Change and Unemployment Rate

Europe – French & Italian Industrial Production, ECOFIN Meetings


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