This is what you need to know to trade today Thursday June 30:
The safe haven money flows dominate financial markets early on Thursday with major European equity indices suffering heavy losses. The DXY dollar index remains relatively calm near 105.00 after a two-day rally. The United States Bureau of Economic Analysis will publish the data for the PCE personal consumption price index, the Fed’s preferred gauge of inflation, along with personal income and spending figures for May. Unemployment data from the euro zone appears on the European economic calendar before Statistics Canada releases monthly GDP data for April at the start of the American session.
Speaking on Wednesday at the European Central Bank (ECB) Forum on Central Banking, the FOMC Chairman, Jerome Powell reiterated that the US economy could resist the impulse of monetary policy. On the same panel, the president of the ECB, Christine Lagarde refrained from committing to a specific rate hike size in July. Finally, the governor of the Bank of England (BoE), Andrew Bailey acknowledged that they were being hit by a “very big revenue shock”after which the dollar continued to gain strength against its rivals.
See: Sintra puts Powell and the dollar at the top, Lagarde and the euro below, while Bailey and the pound lag behind
During the Asian session, data from China showed private sector business activity expanded in June after the contraction in April and May. However, this data did not contribute to improving the mood of the markets. At time of writing, US stock index futures are down between 1.2% and 1.5%.
The EUR/USD It broke below 1.0500 on Wednesday and is now at its lowest level in two weeks around 1.0450.
The GBP/USD lost 60 pips on Wednesday before entering a consolidation phase above 1.2100 early on Thursday. Earlier in the day, the UK Office for National Statistics reported that GDP for the first quarter grew at an annualized rate of 8.7%. This figure coincided with the preliminary estimate and with market expectations.
Driven by the strength of the dollar, the USD/JPY hit new multi-decade highs above 137.00. Early Thursday, the yen appears to be finding demand as a safe haven, pulling the pair back towards 136.00.
The Prayed failed to take advantage of falling US Treasury yields and closed below $1,820 on Wednesday. XAU/USD remains lower and falls towards $1,810 in European morning.
The Bitcoin came under heavy selling pressure and broke below $20,000 early on Thursday. The ethereum It is down more than 4% so far today, but remains above $1,000 for the time being.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
