Here is what you need to know on Wednesday, July 1:
The market dumped the greenback in the last trading day of the quarter, although major pair remained within familiar levels for a third consecutive week. The EUR/USD pair is ending June pretty much unchanged just above 1.1200
US Federal Reserve chair Powell testified before the House Financial Services Committee. He referred to the “extraordinary uncertainty” to the economic outlook related to the ongoing pandemic but added that some macroeconomic figures are pointing in the right direction, as the economy entered a new phase sooner than expected. His comments underpinned equities.
The GBP/USD pair recovered towards 1.24, despite Brexit-related headlines indicating the UK is heading into a no-deal exit. EU’s chief negotiator Michel Barnier accused the UK of making unacceptable demands on financial services, saying that the kingdom is trying to secure “easy” access to the bloc’s single market. His comments indicate that no progress has been made in Brexit talks. Meanwhile, UK PM Johnson announced plans to revive the UK’s economy, pledging to solve social care issues and educational inequality, while supporting local companies.
Canada Gross Domestic Product fell 11.6% MoM in April, an unprecedented slump with activity contracting in all sectors.
European stocks closed higher, wrapping up their best quarterly performance in five years. Wall Street also closed with substantial gains, with the S&P posting its best quarterly advance in over 20 years.
Gold prices soared amid the extraordinary uncertainty mentioned by US Fed’s chief Powell. Spot gold reached a multi-year high of 1,785.96.
Crude oil prices were up, with WTI flirting with $40.00 a barrel, despite the US held a record-high level of commercial crude oil inventories, according to the EIA.
Cryptocurrency Market News: Blockchain startup claims it can undo Bitcoin transactions
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EUR/USD eases toward 1.0700 as USD finds feet ahead of ADP, Fed Minutes
EUR/USD is retreating toward 1.0700 in the early European session on Wednesday. The pair struggles, as the US Dollar finds its feet in the aftermath of the dovish Fed Chair Powell's comments. Cooling EU inflation keeps the Euro undermined. Eyes turn to US ADP data, Fed Minutes.
GBP/USD flatlines below 1.2700, looks to US data/Fed minutes
GBP/USD is lacking a firm directional bias below 1.2700 on Wednesday, reversing early gains. Traders appear reluctant and prefer to wait on the sidelines ahead of the FOMC minutes while the UK elections on Thursday also keep them on the edge. US ADP data eyed as well.
Gold eyes a range breakout, as Fed Minutes looms
Gold price is trading around a flatline near $2,330 early Wednesday, as traders consider the recent US jobs data and Federal Reserve Chairman Jerome Powell’s speech, bracing for yet another busy US calendar.
Bitcoin struggles around $64,000 level
Bitcoin faces resistance near the $64,000 daily level, leading to a 1.05% decline in trading on Wednesday. Ethereum and Ripple similarly encounter resistance, resulting in 1% and 0.5% declines, respectively.
ADP Employment Change Preview: US private sector expected to add 160K new jobs in June
The United States ADP Research Institute will release its monthly report on private sector job creation for June. The announcement is expected to show that the country’s private sector added 160K new positions in June after adding 152K in May.