Focus on PMI Release.

As financial markets resume after the Independence Day holiday in the United States, the currencies GBP, EUR, and USD are set to face a day of mixed trading conditions. Key data releases and ongoing developments are likely to influence market sentiment and currency movements.

Starting with the British Pound (GBP), traders will be closely watching the release of the Services Purchasing Managers’ Index (PMI) for June. The performance of the UK services sector holds substantial importance for the country’s economy. Analysts expect the PMI figure to provide insights into whether the sector expanded or contracted during the period. Additionally, ongoing Brexit negotiations will continue to be in focus, with any updates on trade relations between the UK and the European Union potentially impacting the GBP’s performance.

Meanwhile, the Euro (EUR) is expected to experience moderate trading conditions on 5th July. Yesterday’s release of Eurozone retail sales data for May offered insights into consumer spending trends within the region. Market participants will analyze the data to gauge the Eurozone’s economic health and its potential impact on the EUR. Moreover, investors will closely monitor political events, particularly the upcoming elections in Germany, as any shifts in the political landscape can have longer-term effects on the Euro’s performance.

In the United States, the US Dollar (USD) is anticipated to see moderate trading activity. The Institute for Supply Management (ISM) will release the Services Purchasing Managers’ Index (PMI) data for June. This data point is of particular significance as it provides insights into the strength of the US services sector, a crucial component of the country’s overall economy. Market participants will scrutinize the PMI figure for indications of growth or contraction. Additionally, traders will continue to monitor any hints or comments from Federal Reserve officials regarding the future direction of monetary policy, as these can significantly impact the USD’s performance.

Overall, the GBP, EUR, and USD are expected to face a day of mixed trading conditions as the markets resume normal activity. The Services PMI data releases, along with ongoing Brexit negotiations and political events, will likely shape market sentiment and drive currency movements. Traders should remain vigilant and adapt their strategies accordingly in response to these influences.

Economic Calendar

08:00HCOB Composite PMI (Jun)50.350.3
09:30S&P Global/CIPS Composite PMI (Jun)52.852.8
10:00Producer Price Index (MoM)(May)-1.8%-3.2%
18:00FOMC Minutes

*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.