Commodity currencies rise against the dollar, focus is on ISM services PMI

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This is what you need to know to trade today Tuesday, July 6:

The US dollar remains on the defensive as Americans return after a long weekend and ahead of the ISM services PMI. The Australian dollar lags behind the middle New Zealander in a mixed RBA decision and oil is rising after the failure of OPEC. The UK reopening is criticized for supporting the pound and EURUD investors await German data.

Dollar weakness: Yields on 10-year US Treasury yields are at 1.44%, rebounding from their lows, but the USD has been extending its NFP nonfarm payroll-induced slide. One of the winners has been gold, whose price exceeded $ 1,800.

Stock markets are quiet, with S&P 500 futures stabilizing ahead of the resumption of activity after the long Independence Day weekend. US stocks hit all-time highs last week.

The index PMI Purchasing Managers from ISM Services for June is the focus of attention this Tuesday. The incumbent is expected to retreat from 64 points in May, but continues to reflect robust growth. Investors will look at inflation expectations, represented by the prices paid component.

The Reserve Bank of Australia it left its policy unchanged and said it would continue to buy bonds beyond September, albeit at a slower pace. AUD / USD advanced ahead of the release and has been extending its gains, approaching 0.76. However, it lags behind the NZD / USD, which took advantage of the weakness of the USD and reached the 0.71 level, which is an increase of more than 1%.

The members of the OPEC + they ended their lengthy meeting without an agreement, thus leaving crude production unchanged. Market patrons expected an increase of 400-500 thousand barrels per day. WTI crude has resumed its rise, approaching $ 77. The loonie is also benefiting.

Britain reopening: UK Prime Minister Boris Johnson announced the removal of all restrictions on July 19, despite the increase in COVID-19 cases associated with the Delta variant. GBP / USD is trading close to 1.39 and Markit’s construction PMI is of interest.

The EUR/USD it is trading near 1.19 despite concerns about the spread of the Delta strain on the Old Continent and a 3.7% drop in German factory orders. ZEW economic sentiment figure is expected.

Cryptocurrencies They are rising on Tuesday after falling on Monday. Bitcoin is recovering towards $ 35,000 and Ethereum is hovering above $ 2,300.


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