There were some interesting moves in markets yesterday and they were very much all over the place. It’s been a tough week to try and paint a coherent picture to say the least. The dollar weakened at the balance, with USD/JPY continuing to steal the spotlight for the most part.
Meanwhile, tech shares endured a stinker with investors opting for a rotation play into the Dow – which closed at a fresh record high. The Nasdaq fell by nearly 3% in its worst showing since December 2022. Ouch. Then, we had gold which soared to a high of $2,483 only to stumble back late on in the day. That said, the precious metal is still keeping poised in the hunt of the $2,500 mark next.
The summer doldrums definitely aren’t playing out this time around. And that is keeping things interesting as we might just be breaking a pattern here in markets.
Going back to the dollar, it remains vulnerable with EUR/USD targeting the March highs and GBP/USD eyeing a firmer break above the 1.3000 mark. Both pairs will be in focus today with the ECB and UK jobs report on the agenda.
The ECB will be the main highlight but it is likely one that will generate very little market impact, if not none at all. Policymakers have made it clear that they will not do anything this month and will wait on September for the next rate cut. As such, this is very much a placeholder meeting as they prepare for the summer break.
0600 GMT – UK June payrolls change
0600 GMT – UK May ILO unemployment rate, employment change
0600 GMT – UK May average weekly earnings
0600 GMT – Switzerland June trade balance
1215 GMT – ECB July monetary policy decision
1245 GMT – ECB president Lagarde press conference
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
