European Summary and Highlights 03July
EUR/USD gained 20 pips to 1.0760 in the European morning, with the USD generally weaker against the European currencies, with GBP, CHF and the scandis broadly matching EUR gains.
European morning session
EUR/USD gained 20 pips to 1.0760 in the European morning, with the USD generally weaker against the European currencies, with GBP, CHF and the scandis broadly matching EUR gains. The USD was little changed against the JPY, AUD and CAD.
Datawise there was a small upward revision in the Eurozone composite PMI index for June, and a larger upward revision in the UK index for June, although both were down from May. The Swedish services PMI index showed a rise from the May level to its highest since March.
Asia session
The May Australia Retail sales have come in stronger than expected at 0.6% m/m. It is a positive sign for the Australian economy as consumption has been slower than 2023 so far with continuous high inflationary pressure. Risk sentiment is mostly positive except in China, which seems to be dragged by the missed private service PMI. AUD/USD is trading 0.16% higher at 0.6677, NZD/USD slipped 0.04% to 0.6075 while USD/CAD rose 0.03%.
USD/JPY has reversed Tuesday's reversal and is trading 0.24% higher at 161.80, breaking the weekly high. The move seems to be accelerated by the first contraction in service PMI in two years. U.S. Treasury Yields are also outperforming JGB yields. Else, EUR/USD is down 0.06% and GBP/USD is down 0.02%.