Markets Await June Payroll Report.

GBP (British Pound): The British Pound (GBP) is expected to have limited trading activity on 4th July 2023 due to the Independence Day holiday in the United States. However, here are the key factors and data releases that could influence the GBP:

  • Construction PMI: The Construction Purchasing Managers’ Index (PMI) for June will be released today. This data will provide insights into the performance of the UK construction sector. A higher-than-expected reading may support the GBP, indicating strength in the industry.
  • Brexit Developments: While trading volumes are likely to be lower during the US holiday, ongoing Brexit negotiations could still impact the GBP. Traders should remain cautious and monitor any potential developments that may arise.

EUR (Euro): The Euro (EUR) is expected to experience relatively subdued trading conditions on 4th July, with limited data releases. However, the following factors could influence the EUR:

  • Retail Sales: Eurozone retail sales data for May will be released today. Market participants will analyze this data for insights into consumer spending trends within the Eurozone, which could have implications for the overall economic outlook and the EUR’s performance.
  • Political Developments: Investors will continue to monitor political events, including the upcoming elections in Germany, for any potential shifts that could impact the Euro’s performance. However, with limited news expected on the US holiday, the impact might be muted.

USD (United States Dollar): The US Dollar (USD) is likely to experience reduced trading volumes and potentially lower volatility on 4th July due to the Independence Day holiday. However, here are the key factors and data releases that could influence the USD:

  • Independence Day: The US markets will be closed today in observance of Independence Day, resulting in reduced liquidity and potentially less market activity.
  • Non-Farm Payrolls: The highly anticipated Non-Farm Payrolls (NFP) report for June, a significant economic indicator, will be released on Friday, 7th July, due to the holiday. Traders should anticipate increased volatility and market reaction once the data becomes available.

Overall, with the US holiday impacting trading conditions, the GBP, EUR, and USD are expected to have limited activity on 4th July. The GBP could be influenced by the Construction PMI data, while the EUR may experience subdued trading due to the absence of major data releases. The USD is likely to see reduced volumes and potentially lower volatility, with market participants eagerly awaiting the Non-Farm Payrolls report later in the week.

Economic Calendar

06:00Trade Balance s.a.(May)17B18.4B
13:30S&P Global Manufacturing PMI(Jun)49.649
23:00S&P Global Composite PMI(Jun)50.5

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.