Forex Today: Quiet start to Q3 ahead of key data releases

This is what you need to know to trade today friday july 1:

Following a volatile American session on Thursday, amid US inflation data and month-end money flows, markets remain relatively calm early on Friday. However, investors remain cautious June inflation figures in the euro zone. In the second half of the day, the report of the ISM Manufacturing PMI will be the protagonist of the American economic agenda. The DXY dollar index recovers modestly towards 105.00 and US stock index futures are trading in negative territory.

See: ISM Manufacturing PMI Preview: A high inflation component would steal the show, boosting the dollar

In an interview with the Austrian newspaper Oberoesterreichische Nachrichten, the policy officer of the European Central Bank (ECB), Robert Holzmann, pointed out that he would have preferred the bank to raise its policy rate before. Eurostat is expected to report that the annual IPCA Harmonized Consumer Price Index rose to 8.3% in June from 8.1% in May.

See: Eurozone Inflation Preview: Core CPI Is Key, 4% Will Trigger EUR/USD Rally

Earlier in the day, data from China showed that the Caixin manufacturing PMI improved to 51.7 in June from 48.1 in May, but this figure does not seem to have a positive impact on market sentiment at the beginning of the European session.

Meanwhile, oil prices fell sharply after the OPEC + decided to maintain its current plan to increase production by 648,000 barrels per day in August. The group refrained from discussing the production strategy from September. West Texas Intermediate WTI, which fell more than 3% on Thursday, is now down 0.8% on the day to settle at $105.15.

The EUR/USD made a decisive rebound during the American session and ended up closing in positive territory on Thursday. The pair remains lower in the early hours of Friday and approaches 1.0450.

The GBP/USD posted small daily gains on Thursday, but turned lower early on Friday. The pair is now back towards 1.2100.

The USD/JPY fell sharply on Thursday amid falling US Treasury yields. With the 10-year US Treasury yield shedding almost 2% to below 3% so far today, the pair is trading in negative territory below 135.00 in European morning.

The Prayed failed to take advantage of falling yields and closed for the fourth straight day in negative territory. Sellers continue to dominate XAU/USD action early on Friday, with the pair trading below $1,800 for the first time since mid-May.

Although the Bitcoin rose above $20,000 on Friday, after dipping below that level on Thursday, failed to maintain its recovery momentum and is now trading near $19,300. The ethereum It is still trading just over $1,000.