This is what you need to know to operate today Wednesday, July 2:
The US dollar (USD) remains firm in front of its rivals early on Wednesday, with the USD index recovering towards 97.00 after closing the previous seven days of negotiation in negative field. Later in the day, the private sector employment report for June, published by Automatic Data Processing (ADP), will be highlighted in the US economic calendar.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.35% | 0.36% | 0.03% | 0.19% | 0.26% | 0.18% | |
| EUR | -0.24% | 0.09% | 0.10% | -0.24% | -0.03% | 0.13% | -0.04% | |
| GBP | -0.35% | -0.09% | 0.04% | -0.35% | -0.17% | 0.02% | -0.16% | |
| JPY | -0.36% | -0.10% | -0.04% | -0.34% | -0.19% | -0.07% | -0.19% | |
| CAD | -0.03% | 0.24% | 0.35% | 0.34% | 0.18% | 0.33% | 0.17% | |
| Aud | -0.19% | 0.03% | 0.17% | 0.19% | -0.18% | 0.22% | 0.00% | |
| NZD | -0.26% | -0.13% | -0.02% | 0.07% | -0.33% | -0.22% | -0.18% | |
| CHF | -0.18% | 0.04% | 0.16% | 0.19% | -0.17% | -0.00% | 0.18% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
On Tuesday, the Senate approved the “great beautiful bill” of the president of the United States, Donald Trump, which includes a permanent extension of the 2017 tax cuts, after vice president JD Vance issued the rare tiebreaker vote. The bill now moves to the Chamber before being finally taken to the White House on July 4. On Wednesday’s European morning, the futures of stock stock indexes of the US are modestly listed up, reflecting an optimistic mood in the market.
While talking in a policy panel in the Central Banking forum of the European Central Bank (ECB) on Tuesday, the president of the Federal Reserve (Fed), Jerome Powell, reiterated that they need to be patients with respect to the flexibility of politics, while the economy remains solid.
EUR/USD He reached a new maximum in several years in 1,1830 on Tuesday, but erased a part of his daily profits to close upward. In Wednesday, the pair remains defensive and listed below 1,1800. The Eurozone data showed that the unemployment rate rose to 6.3% in May from 6.2% in April.
GBP/USD Around 1,3700 is maintained in negative land during the European session on Wednesday, after registering small profits on Tuesday. The governor of the Bank of England, Andrew Bailey, repeated on Tuesday that they see signs of weakening in the economy and the labor market.
USD/JPY Win traction and test 144.00 after registering losses on Monday and Tuesday. The president of the USA, Trump, said at the last minute of Tuesday that he is considering the possibility of adding additional tariffs to Japan and not extending the self -imposed term of July 9 on reciprocal tariffs currently suspended.
Gold He preserved his bullish impulse and won more than 1% on Tuesday. The Xau/USD remains in a consolidation phase and fluctuates below $ 3,350.
EMPLOYMENT – FREQUENT QUESTIONS
The conditions of the labor market are a key element to evaluate the health of an economy and, therefore, a key factor for the assessment of currencies. A high level of employment, or a low level of unemployment, has positive implications for consumer spending and, therefore, for economic growth, which drives the value of the local currency. On the other hand, a very adjusted labor market – a situation in which there is a shortage of workers to cover vacancies – can also have implications in inflation levels and, therefore, in monetary policy, since a low labor supply and high demand lead to higher wages.
The rhythm to which salaries grow in an economy is key to political leaders. A high salary growth means that households have more money to spend, which usually translates into increases in consumer goods. Unlike other more volatile inflation sources, such as energy prices, salary growth is considered a key component of the underlying and persistent inflation, since it is unlikely that salary increases will fall apart. Central banks around the world pay close attention to salary growth data when deciding their monetary policy.
The weight that each central bank assigns to the conditions of the labor market depends on its objectives. Some central banks have explicitly related mandates to the labor market beyond controlling inflation levels. The United States Federal Reserve (Fed), for example, has the double mandate to promote maximum employment and stable prices. Meanwhile, the only mandate of the European Central Bank (ECB) is to maintain inflation under control. Even so, and despite the mandates they have, labor market conditions are an important factor for the authorities given its importance as an indicator of the health of the economy and its direct relationship with inflation.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
