Market Drivers – US Session – July 4

Mohamed Abdelhamid 5 July, 2022 4:01 am Commodities, Forex Market, Global Stock Market, Market Update

Asian shares achieved shy gains, but European indexes maintained the green the territory with some difficulty, reflecting persistent growth and inflation concerns while Wall Street futures responded to such fears by edging lower.

Financial markets witnessed a quiet start of the week, as US markets were closed commemorating the Independence Day Holiday. The dollar gathered some momentum by the end of the day, but price action was limited as traders stayed away on this day off. The dollar advanced against its safe-haven rival currencies, with USD/CHF trading at 0.9610 and USD/JPY at 135.70.

Gold Price saw limited activity, changing hands at around $1,807 per ounce. Crude oil, on the other hand, is up, with WTI trading at $110.45 per barrel.

Economic Data

The EUR/USD pair trades around 1.0420, not far from Friday close. Negative European data undermined demand for the Euro, as the May Producer Price Index was up by 36.3% YoY. The energy crisis also hurt the EUR amid the Russian invasion of Ukraine.

Other Developments

In the US, attention remains on the Biden administration as officials are discussing whether or not to remove Chinese tariffs imposed by former President Donald Trump. A decision on the matter may be out this week.

GBP/USD trades around 1.2100, as Brexit woes undermined demand for the Pound. The Labour party is willing to fight Prime Minister Boris Johnson over his Brexit legacy at the next election. The agreement created turmoil within the UK that exacerbates price pressures amid trade disruption. Entire industries in Germany could collapse due to natural-gas supply cuts from Moscow, according to Yasmin Fahimi, the country’s top union official.

Commodity-linked currencies advanced against the greenback. USD/CAD trades around 1.2860, while the AUD/USD pair is now at 0.6860. The Reserve Bank of Australia will announce its monetary policy decision early on Tuesday and will surely revive volatility after a quiet Monday.

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