Market Driver; US Session, July 3

Mohamed Abdelhamid 4 July, 2024 7:05 am Commodities, Forex Market, Market Update

The US dollar fell to multiday lows in the wake of another data-driven sell-off, which coincided with a general decline in US rates and the July 4 Independence Day holiday. The UK general elections are also anticipated to be actively watched by markets in the lead-up to the French second round next weekend.

Due to weak US docket data and the impending Independence Day vacation on Thursday, the USD Index (DXY) began to drop more quickly.

Currency Pairs

Amidst more decline in the Greenback, EUR/USD eventually broke above the 1.0800 barrier. The ECB will release its June meeting’s accounts on July 4.

GBP/USD reached three-week highs significantly above 1.2700 and kept outperforming its rivals with higher risk profiles. All eyes will be on the UK general elections on July 4, which are predicted to deliver a big win for the Labour party. The S&P Global Construction PMI and New Car Sales are coming on the docket.

The USD/JPY pair continued to trade close to multi-decade highs within the 162.00 region and at the higher end of the previous range. Only on July 4 are the customary weekly Foreign Bond Investment numbers due.

With strong buying pressure in the US Dollar and encouraging domestic data, the AUD/USD finally broke above the crucial 0.6700 barrier. Results for the Balance of Trade will be released on July 4.

Commodities

WTI prices resumed their uptrend on the back of a bullish weekly report from the EIA, prospects of higher demand and a weaker dollar.

Gold prices climbed to multi-session tops and flirted with the $2,365 mark per ounce troy, backed by selling pressure in the Greenback, lower US yields, and expectations of interest rate cuts. By the same token, Silver rallied more than 3% to surpass the key $30.00 mark per ounce and revisit multi-day peaks.

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