Markets await Non-Farm Payroll release.

GBP (British Pound): The British Pound (GBP) is expected to face moderate trading conditions on 7th July 2023 as market participants react to key data releases and monitor Brexit developments. Here are the key factors and data releases that could influence the GBP:

• Services PMI: The Services Purchasing Managers’ Index (PMI) for June was released on 6th July and indicated expansion in the UK services sector. This positive data supported the GBP. However, traders will continue to monitor ongoing Brexit negotiations and any updates on trade relations with the European Union, which could impact the GBP’s performance.
• Bank of England (BoE) Outlook: Market participants will pay attention to any statements or signals from the Bank of England regarding its monetary policy outlook. Any indications of potential interest rate changes or adjustments to asset purchase programs could impact the GBP.

EUR (Euro): The Euro (EUR) is likely to experience moderate trading conditions on 7th July. Here are the key factors and data releases that could influence the EUR:

• German Factory Orders: The German factory orders data for May will be released today. This indicator provides insights into the performance of the German manufacturing sector, which is a key driver of the Eurozone economy. Traders will closely monitor this release for indications of strength or weakness in the sector and its potential impact on the EUR.
• European Central Bank (ECB) Communication: Market participants will watch for any communication from the European Central Bank, including speeches from ECB officials, for insights into the central bank’s monetary policy stance and potential future actions. These remarks could influence the EUR.

USD (United States Dollar): The US Dollar (USD) is expected to face moderate trading conditions on 7th July. Here are the key factors and data releases that could influence the USD:

• Non-Farm Payrolls (NFP): The highly anticipated NFP report for June will be released today. This report provides a comprehensive overview of the US labor market, including job growth, unemployment rate, and wage data. Traders should anticipate increased volatility and market reaction based on the outcome of this data release.
• Federal Reserve Outlook: Market participants will analyze any comments or speeches from Federal Reserve officials for insights into the central bank’s monetary policy outlook. Hints or indications of future interest rate hikes or adjustments to asset purchases could impact the USD.

As the trading day unfolds, market participants will closely monitor these key factors and data releases to gauge market sentiment and currency movements. It is crucial to stay updated with the latest news, economic indicators, and geopolitical developments to make informed trading decisions.

Please note that unforeseen events and geopolitical tensions can impact currency markets. Traders are advised to exercise caution, employ risk management strategies, and adapt their trading approach to the evolving market conditions.

Overall, the GBP, EUR, and USD are expected to experience moderate trading conditions on 7th July, with key data releases and central bank communications likely to influence market sentiment and currency movements.

Economic Calendar