Market Update – July 5 – USD Hold Gains, RBA Acts, Stocks Steady

USD holds at highs (USDIndex 104.85), Stocks closed higher in Europe and hold gains in Asia with US FUTS higher too.  Yields are flat but off recent lows. Asian markets buoyed by positive Yellen-Liu He meeting, prospect of Chinese & Australian Fin. Min. meeting this week and better PMI data from Japan & China, all despite action from the RBA. Covid concerns continue to weigh (Hang Seng +0.07%, Nikkei +1.04%) Oil ticks to $110, Gold holds over $1800 & BTC regains $20k. JPY underperforms in Asian. RBA raises rates in line with expectations by 50bp to 1.35%.

Week Ahead – Topped by NFP on Friday, FOMC Minutes on Wednesday and RBA rate decision tomorrow

USDIndex tested 105.00 Monday before slipping back to 104.85 now. 
EquitiesUSA500 closed +39 (3825), Friday  US500FUTS higher at 3854 now.
Yields 10-year yield lower, closed down Friday at 2.889% , trades at 2.880% now.   
Oil & Gold had mixed sessions – USOil has rallied to $110.40 earlier from $108.00 Monday. Gold holds between resistance at $1815 and support at $1800, trading at $1808 now. 
Bitcoin continues to trade around $20K, testing $20.3K today.
FX MarketsEURUSD remains pressured at 1.0430,  USDJPY rallied  to 136.30 earlier from under 135.00 Monday. Cable trades at 1.2110 now.

OvernightChina Services PMI’s better at 54.3 vs 47.3, Japanese Service PMI also improve at 54.0 vs 52 last time.  

Today – EZ/UK Services and Composite Final PMIs, Speech from BoE’s Tenreyro

Biggest FX Mover @ (06:30 GMT) EURJPY (+0.54%). JPY weaker today. Rallied from under 140.00 Thursday to 142.20 now, next resistance, 142.75 & 143.00. MAs aligning higher, MACD histogram positive & rising, RSI 66.00 & rising, H1 ATR 0.212, Daily ATR 1.402.

Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.