Market participants will continue to digest the FOMC minutes and prepare for the upcoming economic reports about the US labor market. During the Asian session, Australia will report trade data, and later in Europe, Eurozone Retail Sales are due.
Here is what you need to know on Thursday, July 6:
US markets dropped moderately on Wednesday on the back of tensions between China and the US, as well as following reports of softer economic activity. The Chinese Caixin Services dropped more than expected, and Japanese, Australian, and Eurozone PMIs were revised lower. Additionally, US Factory Orders rose below expectations.
Data from the US on Wednesday showed an increase in Factory Orders in May of 0.3%, below the market consensus of 0.8%. On Thursday, the focus will turn to labor market data with the ADP private employment report, Jobless Claims, and JOLTS. These numbers will be followed on Friday by the Nonfarm Payrolls report. Also on Thursday, the ISM Services PMI is due.
The FOMC minutes of the June meeting, when the central bank skipped, showed no major surprises. Some members "favored" a 25 basis points rate hike. The message continues to be that members see more rate hikes ahead, and the markets are finally believing the Fed.
US yields rose, supporting the US Dollar. The 10-year yield climbed to 3.95%, the highest level since mid-March. The DXY rose for the third day, rising above 103.30 but remains under the critical level of 103.50. The short-term direction of the US Dollar will likely be US labor data dependent.
The final June Services PMI from the Eurozone was revised modestly lower, and also the Composite PMI, which dropped below 50 for the first time since December. The Eurozone Producer Price Index declined in May by more than expected, with a monthly slide of 1.9% and the annual rate falling from 0.9% to -1.5%. On Thursday, Germany will report Factory Orders, and Eurozone Retail Sales.
EUR/USD failed to retake 1.0900 and dropped toward 1.0850, as the Euro lagged and the Dollar outperformed. EUR/GBP fell to one-week lows under 0.8550. GBP/USD remained sideways around 1.2700, supported by the 20-day Simple Moving Average.
USD/JPY continued to move in the recent range around 144.50, with the focus on the 145.00 potential intervention level. Higher government bond yields and the divergence between the Bank of Japan and other central banks supports the uptrend.
NZD/USD dropped marginally after being unable to hold above 0.6200. The Kiwi outperformed among commodity currencies. AUD/USD ended a four-day positive streak after failing to retake 0.6700. The pair dropped to 0.6650, the day after the Reserve Bank of Australia (RBA) kept rates on hold. AUD/NZD fell for the fourth day in a row, reaching the weakest level since late May at 1.0760.
USD/CAD rose from 1.3220, approaching 1.3300, hitting the strongest level in two weeks. The Loonie failed to benefit from higher crude oil prices. The WTI barrel rose 1.25%, hitting weekly highs near $72.00.
Gold spiked to $1,935 but later reversed, falling below $1,920 and ending the day looking vulnerable. On the contrary, Silver rose 0.70% and finished above $23.00. Cryptocurrencies declined, with Bitcoin falling 1.05% to $30,465, and Ethereum dropping to $1,910.
Like this article? Help us with some feedback by answering this survey:
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 stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.