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Forex Today: Busy start to the week awaiting German inflation and US PMI data

This is what you need to know to trade today Monday July 1:

He United States Dollar (USD) is struggling to find demand at the start of the third quarter as investors adjust their positions ahead of this week’s key macroeconomic events and data releases. Later in the session, investors will closely monitor Germany’s preliminary June Consumer Price Index (CPI) data. The ISM manufacturing PMI for June and Construction Spending data for May will be published on the US economic agenda.

US Dollar PRICE Today

The table below shows the percentage change of the US Dollar (USD) against major currencies today. The US Dollar was the weakest currency against the Euro.

USD -0.45% -0.23% 0.16% 0.00% -0.08% -0.08% 0.11%
EUR 0.45% -0.01% 0.31% 0.15% 0.25% 0.05% 0.25%
GBP 0.23% 0.01% 0.29% 0.16% 0.26% 0.07% 0.26%
JPY -0.16% -0.31% -0.29% -0.15% -0.18% -0.24% -0.03%
CAD -0.01% -0.15% -0.16% 0.15% -0.05% -0.09% 0.10%
AUD 0.08% -0.25% -0.26% 0.18% 0.05% -0.20% 0.07%
NZD 0.08% -0.05% -0.07% 0.24% 0.09% 0.20% 0.21%
CHF -0.11% -0.25% -0.26% 0.03% -0.10% -0.07% -0.21%

The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the box will represent USD (base)/JPY (quote).

The US Bureau of Economic Analysis reported on Friday that the Personal Consumption Price Index (PCE), the Federal Reserve’s (Fed’s) preferred inflation gauge, rose 2.6% year-on-year in May. On a monthly basis, the PCE Price Index remained unchanged. These figures were in line with analysts’ estimates and the USD Index closed the last trading day of the second quarter in negative territory on Friday. Early on Monday, the USD Index continues to decline and was seen fluctuating deeply in negative territory near 105.50. Meanwhile, the US 10-year Treasury bond yield remains stable around 4.4% and US stock index futures gain between 0.25% and 0.4% in the early European session.

France held the first round of parliamentary elections on Sunday. Exit polls showed Marine Le Pen’s far-right National Rally (RN) party winning around 34% of the vote, ahead of the left-wing New Popular Front (NFP) coalition and President Emmanuel Macron’s Together alliance, which are projected to receive 29% and 20.5%-23% of the vote respectively, according to Reuters. The second round of the election will take place on July 7. EUR/USD It started the week on a bullish note and was seen gaining around 0.5% on the day to 1.0770.

He GBP/USD benefits from selling pressure surrounding the USD and rises towards 1.2700 after closing the previous week virtually unchanged.

He AUD/USD It started the week with a bullish gap but struggled to gain momentum. After rising towards 0.6700, AUD/USD lost traction and was seen trading flat on the day around 0.6670.

He USD/JPY fluctuates in a narrow range near 161.00 in the European morning on Monday. On Friday, the pair hit a multi-decade high near 161.30 but subsequently retreated as investors refrained from betting on further weakness in the Japanese Yen amid the risk of intervention.

Economic indicator

ISM manufacturing PMI

He Institute of Supply Management (ISM) publishes the manufacturing index which shows business conditions in the United States manufacturing sector, taking into account expectations for future production, new orders, inventories, employment and deliveries. It is a significant indicator of overall American economic activity. A reading above 50 points indicates expansion in economic activity, while a reading below 50 points implies a decrease in activity. A result higher than expected is bullish for the dollar, while a result lower than the consensus is bearish.

Read more.

Last post: Mon Jun 03, 2024 14:00

Frequency: Monthly

Current: 48.7

Dear: 49.6

Previous: 49.2

Fountain: Institute for Supply Management

The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) provides a reliable perspective on the state of the U.S. manufacturing sector. A reading above 50 suggests that business activity expanded during the period. the survey and vice versa. PMIs are considered leading indicators and could indicate a change in the economic cycle. Stronger than expected results generally have a positive impact on the USD. In addition to the headline PMI, the Employment Index and Prices Paid Index numbers are being watched closely as they shed light on the labor market and inflation.

Source: Fx Street

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