Forex Today: Market action remains subdued at the start of the week

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This is what you need to know to trade today monday july 4th:

After the volatility on Friday, the markets will remain relatively calm on Monday. The stock and bond markets in the United States will remain closed due to the 4th of july holiday. The European economic agenda will include data from the July PPI Producer Price Index and the Bank of Canada will release its business outlook survey in the second half of the day. The Dollar Index, which gained nearly 1% last week, is now trading sideways slightly above 105.00, with US stock index futures posting small losses.

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Data published by Eurostat showed on Friday that the harmonized index of consumer prices Core IPCA fell to 3.7% year-on-year in June from 3.8% in July. Later, US data revealed that the ISM manufacturing PMI fell to 53 points in June, from 56.1 in May. The employment and new orders components of the ISM survey fell below 50, showing monthly contractions. The 10-year US Treasury bond yield broke below 3% after this data and ended up losing nearly 8% for the week.

The USD/CHF is under modest downside pressure and is now trading below 0.9600 after Swiss data showed the consumer price index rose to 3.4% year-on-year in June from 2.9% in May.

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The EUR/USD it is moving sideways below .0450 early Monday. The pair lost more than 100 points last week as investors reassessed the European Central Bank’s monetary policy outlook amid mixed inflation data.

The GBP/USD trades slightly higher above 1.2100 in European morning. Over the weekend, the foreign ministers of Germany and Ireland said in a joint statement that there was no legal or political justification for the UK to unilaterally change the terms of the Northern Ireland Protocol..

The USD/JPY clings to gains near 135.50 early Monday, having closed the last two days of the previous week in negative territory. Kazuo Momma, a former senior official in charge of monetary policy at the Bank of Japan (BoJ), told Bloomberg TV on Monday that expects the BoJ to keep its monetary policy loose for many quarters.

Gold fell to its lowest level since January at $1,784 on Friday, but managed to rebound amid falling US yields. XAU/USD is trading sideways in a relatively tight range near $1,810 at the start of the European session.

The Bitcoin he failed to recover the $20,000 on Sunday and is now down nearly 2% on the day at $19,100. The ethereum fluctuated in a tight channel over the weekend, but came back under bearish pressure at the beginning of the week. ETH/USD is nearing $1,000, losing 2.5% on the day.

Source: Fx Street

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