Headlines:
Japanese yen stays in focus as inflation data slows further in MayEuro, yields dip on softer French and German PMI readingsFrance June flash services PMI 48.8 vs 50.0 expectedGermany June flash manufacturing PMI 43.4 vs 46.4 expectedEurozone June flash services PMI 52.6 vs 53.5 expectedUK June flash services PMI 51.2 vs 53.0 expectedUK May retail sales +2.9% vs +1.5% m/m expectedBOJ is to hold meeting with bond market participants on 9-10 JulyBOJ’s Uchida: Uncertainty surrounding economic, price outlook remains high
Markets:
NZD leads, EUR lags on the dayEuropean equities lower; S&P 500 futures down 0.2%US 10-year yields down 2.4 bps to 4.230%Gold up 0.3% to $2,366.41WTI crude down 0.2% to $81.12Bitcoin down 2.1% to $63,690
The euro was in focus in European morning trade today amid the releases of the French and German PMI data.
Both sets of releases disappointed, signaling that the euro area economy might have grounded to a halt in Q2. That weighed on the single currency, with EUR/USD easing from 1.0705 to 1.0670 during the session.
Besides that, the movement among major currencies was relatively light elsewhere. USD/JPY remains underpinned near 159.00 but lower yields saw the pair slip a little to 158.70 on the session. But it is now trading back up to 158.90 levels currently.
The rest of the major currencies bloc remains more muted, with the dollar keeping steadier overall.
In the equities space, European stocks are seeing yesterday’s bounce fade a fair bit. The poor PMI data did weigh on the mood, with regional bond yields also sagging as a result.
It’s over to North America trading now to see what the US PMI data has to offer.
This article was written by Justin Low at www.forexlive.com.
