Markets are mixed after closing the second quarter with the strongest rise since 1998. Upbeat Chinese PMIs are outweighing coronavirus concerns while a busy day features the top-tier US hints toward the Non-Farm Payrolls, the Fed minutes, and more.
US Federal Reserve chair Powell testified before the House Financial Services Committee. He referred to the “extraordinary uncertainty” to the economic outlook related to the ongoing pandemic but added that some macroeconomic figures are pointing in the right direction, as the economy entered a new phase sooner than expected. His comments underpinned equities.
EUR/USD is back to its range ahead of final Markit’s Manufacturing PMIs for June, with hopes for recovery. Europe is coping with coronavirus and will begin welcoming visitors from a select group of countries. Americans – essential for the tourism sector – are currently disallowed.
GBP/USD is trading above 1.23 after a volatile end to the second quarter. Final growth figures for the first quarter disappointed and Prime Minister Boris Johnson’s “Build, build, build” speech fell short on details.
USD/JPY is trading in the red near 107.68 at press time, having put in a session high of 108.16 two hours ago. Yen may be drawing bids due to losses in the US stock futures.
Gold ended the second quarter with a blast, jumping above $1,780 to the highest levels since late 2012. The precious metal benefited from end-of-quarter flows and is holding onto the gains.
Oil prices completed an impressive comeback in the second quarter, with WTI kicking off the third one around $40. Moving on, the official oil inventory data from the Energy Information Administration (EIA), expected -0.95M versus 1.442M prior, could offer reasons for the oil buyers to step in.
In the European session the Germany’s Unemployment Rate, final Eurozone PMI prints and UK Manufacturing PMI for June will offer a fresh impetus.
Meanwhile, the US economic docket highlights the release of the ADP report on private-sector employment and ISM Manufacturing PMI.
Later during the US session, the minutes of the latest FOMC monetary policy meeting will further influence the USD price dynamics and produce some meaningful trading opportunities ahead of Thursday’s release of the closely watched US monthly jobs report.