Daily Update – 3rd July 2019
Euro also got a temporary boost from a report saying that the ECB policymakers are not considering adding monetary stimulus or cutting rates in this month’s meeting, but rather wait until September when they will have fresher updates on economic forecasts Highlight, EU leaders, nominated IMF Director, Christine Lagarde, for ECB’s Presidency, with Lagarde temporarily quitting to her current position. The Pound was hit early London session by the UK Construction PMI, as the index came in at 43.1, much worse than the 49.3 expected. As it happened with the manufacturing PMI, construction business contraction is directly linked to Brexit uncertainty. Later, it was the turn of BOE’s Governor Carney to weigh the currency lower, as he warned about the risks that protectionism poses to the economy Wednesday will bring the final versions of the Markit Services PMI for June for both economies. Services output has been performing better than the manufacturing one, which means that negative surprises there could have a more relevant effect on the respective currency. The US will also release the ADP survey ahead of the NFP report on Friday, with the private sector seen adding 140K new jobs vs. 27K previously, and the ISM Non-Manufacturing PMI, seen at 55.9 from 56.9 previously.Yesterday Market
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