Meanwhile, China and the EU have agreed to defend against the US position of multilateralism and to promote globalism. The PBOC cut the RRR over the weekend to ease the impact from US tariffs and the stock market fall, giving Chinese banks a 500 Billion Yuan cushion. This led to a small gain in Chinese equities, but with tension still high, that quickly evaporated and European equity futures are pointing to a bearish open. AUDUSD fell to 0.74150 while the Japanese Nikkei 225 is trading around 22300.00 with the yen gaining against GBP, USD and EUR. Oil was upon Friday after OPEC agreed on maintaining current production levels but has pared some of the gains today.
Eurozone Markit Manufacturing PMI (Jun) was 55.0 against an expected 55.0 from 55.5 previously. Markit Services PMI (Jun) was 55.0 against an expected 53.7 from 53.8 previously. Markit PMI Composite (Jun) was 54.8 against an expected 53.9 from 54.1 prior. This data stabilized somewhat, with Services and Composite readings beating expectations and previous readings. EURUSD reached down to support at 1.16408 before heading higher to 1.16747 after the released data hit the market.
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Canadian Consumer Price Index (May) was 0.1% (MoM) and 2.2% (YoY) against an expected 0.3% (MoM) and 2.5% (YoY) against 0.3% (MoM) and 2.2% (YoY) previously.Consumer Price Index – Core (MoM) (May) came in at -0.1% from 0.0% previously. BOC Consumer Price Index Core (May) was -0.1% (MoM) and 1.3% (YoY) against an expected0.2% (MoM) and 1.4% (YoY) from 0.1% (MoM) and 1.4% (YoY) previously. Canadian Retail Sales ex Autos (MoM) (Apr) were -0.1% against an expected 0.5% from -0.2% previously which was revised up to 0.0%. Retail Sales (MoM) (Apr) were -1.2% against an expected 0.0% from 0.6% previously which was revised up to 0.8%. These data points came in softer this month with all missing their consensus reading and most down since last month. Retail sales fell into negative territory this month. USDCAD spiked higher from 1.32776 to set a high for the day at 1.33810 on the back of the disappointing data.
US Markit Services PMI (Jun) was 56.5 against an expected56.4 from 56.8 previously. Markit PMI Composite (Jun) was 55.1 against an expected 55.1 from 56.6 prior. This data shows a drop in the metrics since last month although it was not as bad as forecast. GBPUSD fell from 1.32901 to 1.32490 as a result of this data.
- EURUSD is down –0.12% overnigh
t, trading around 1.16414. - USDJPY is down –0.49% in the early session, trading at around 109.440
- GBPUSD is down -0.03% this morning trading around 1.32541
- Gold is down -0.32% in early morning trading at around $1,265.00
- WTI is down -1.44% this morning, trading around $67.97
This article was written by FxPro
