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With another session of quiet trading activity across the FX sector, the US dollar moved marginally defensively. At their discussion panel at the ECB Forum, Fed Chair Jerome Powell and ECB President Christine Lagarde left no space for surprises in the interim. Investors are bracing themselves for a plethora of US data releases on Wednesday, in addition to the FOMC Minutes, ahead of the UK general elections on July 4 and the US Independence Day vacation.
Forex Scene:
For the fourth straight session, the USD Index (DXY) held its bearish position while moving in narrow ranges and consistently staying below the 106.00 barrier. First up on a packed schedule, the weekly mortgage applications will be released on July 3. This will be followed by the ADP Employment Change and the Balance of Trade. Furthermore, the FOMC Minutes, Factory Orders, the ISM Services PMI, and the final S&P Global Services PMI are all released after the initial jobless claims.
The EUR/USD pair made a slight increase and passed back through the 1.0750 zone amid generally quiet trading in the international markets. The third day of the ECB Forum will begin on July 3, and the final HCOB Services PMI for Germany and the wider euro zone is scheduled for release.
On Tuesday, all markets were flat except for GBP/USD, which managed to post significant gains and continue its rebound for a fourth straight session. On July 3, the final S&P Global Services PMI will be made public.
Tuesday saw a slight increase in USD/JPY, but it was sufficient to secure another multi-decade high in the 161.70–161.75 range. On July 3, the Jibun Bank Services PMI final print is anticipated.
While staying in the sub-0.6700 range, AUD/USD was able to somewhat offset the week’s bad start. Prior to the final Judo Bank Services PMI and the preliminary readings of building permits and retail sales, the Ai Group Industry Index is scheduled for release in Australia on July 3.
Commodities
WTI prices reached new three-month highs above $84.00 per barrel on Tuesday, but they quickly lost all of those gains and dropped down to the sub-$83.00 range at the close of the North American trading day.
While the larger consolidative phase that has been in place since mid-May continued, gold prices moved within a limited band around $2,330 per ounce troy. Conversely, silver showed respectable gains and continued to recover for an additional session, regaining the crucial $30.00 per ounce level.
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