- EUR/USD has dropped to near 1.0900 amid a cautious market mood.
- S&P earnings could be full of surprises as overall demand is strong in conjunction with higher interest rates by the Fed.
- US Manufacturing PMI has contracted straight for eight months.
The EUR/USD pair has corrected to near the round-level cushion of 1.0900 in the late Asian session. The major currency pair has faced some pressure as the market mood has turned cautious amid the holiday in the United States due to Independence Day.
S&P500 futures are showing choppy moves in late Tokyo as investors have sidelined ahead of the quarterly result season. Earnings could be full of surprises as overall demand is strong in conjunction with higher interest rates by the Federal Reserve (Fed).
The US Dollar Index (DXY) has climbed to near 103.00 as investors have started ignoring weak US Manufacturing PMI and are focusing on the release of the Federal Open Market Committee (FOMC) minutes. On Monday, the US ISM reported that Manufacturing PMI was contracted straight for eight months as a figure below 50.0 is considered a general contraction. The economic data landed at 46.0, significantly lower than the expectations of 47.2 and the former release of 46.9.
Contrary to the US PMI data, New Orders Index jumped to 45.6, higher than the consensus of 44.0 and the prior release of 42.6.
Meanwhile, the Euro bulls are facing some challenges as the preliminary headline Harmonized Index of Consumer Prices (HICP) for June has softened to 5.5% in June vs. the prior release of 6.1%. This is the seventh decline in price pressures in the past eight months. However, core inflation that excludes volatile oil and food prices decelerated marginally to 6.8% vs. 6.9% released earlier.
European Central Bank (ECB) President Christine Lagarde has already conveyed that the interest rate policy is not sufficiently restrictive to bring inflation to 2%.
Going forward, investors will keep focusing on the Eurozone Retail Sales data, which will release on Thursday. Monthly Retail Sales data is seen at 0.2% vs. a stagnant figure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats to three-week lows near 1.1050 on Middle East jitters
EUR/USD accelerates its downtrend on Tuesday on the back of further gains in the US Dollar, which were exacerbated following Iran's missile attack on Israel.
GBP/USD drops to multi-day lows near 1.3250
Further selling pressure motivates GBP/USD to break below the 1.3300 support with certain conviction on the back of the robust uptick in the Greenback, which gathered extra steam ono escalating effervescence in the Middle East.
Gold looks firm around $2,670 on Israel-Iran crisis
Gold prices maintain their bullish bias around the $2,670 region per ounce troy on the back of increasing tension in the Middle East after Iran launched a missile attack on Israel.
Gillian Lynch, head of EU at Gemini: “The next phase of crypto growth will be exponential”
Gillian Lynch is the Head of Ireland and EU at Gemini, the US crypto exchange founded by Cameron and Tyler Winklevoss. FXStreet interviewed her during the European Blockchain Convention 2024 in Barcelona, where Lynch expressed her optimism about the crypto industry.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.