Daily Update – 4th July 2019
The euro was little changed against the U.S. dollar on Wednesday, as initial enthusiasm over the latest U.S.-China trade truce was overtaken by fresh concerns over Washington’s threat of tariffs on additional European goods kept investors cautious. The common currency briefly got a lift on Tuesday after a media report that the European Central Bank was in no rush to cut rates at the July meeting. But it later slipped after IMF Managing Director Christine Lagarde, perceived as a policy dove, was nominated as the next ECB president. The dollar declined to hit 1-week low against the Japanese yen on Wednesday, as declining U.S. Treasury bond yields and fading optimism over the China-U.S. trade deal increased demand for safe haven Japanese yen. U.S. economic reports on Wednesday were mixed and did not really change the dollar's trading direction. The UK won’t release relevant macroeconomic data this Thursday. Thursday will be a lighter day, as the US markets will be closed on holidays. The EU will release only May Retail Sales, seen up by 0.3% MoM and by 1.6% YoY.Yesterday's Focus
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