After a torrid few days, the greenback managed to seek out a bit of assist yesterday. The home information was mildly encouraging in that weekly jobless claims fell once more, the service sector pushed the US composite PMI to the very best ranges since final December, and June new house gross sales weren’t too weak. On the similar time, US fairness markets proceed to nudge to new highs on wholesome second-quarter earnings releases and the view that the Federal Reserve might be slicing charges later this yr, ING’s FX analyst Chris Turner notes.
USD can discover a bit of stability this summer season
“With reference to equities, buy-side surveys recommend that investor money ranges are comparatively low and that the group could also be near being absolutely invested. Whereas a catalyst for an fairness correction is just not apparent (tariff deadlines in August spark new threats?), it seems to be like merchants will nonetheless should be nimble this summer season.”
“There’s not lots on the US calendar right this moment, however subsequent week is a jam-packed one within the type of the FOMC assembly, June PCE inflation information, tariff deadlines and the July payrolls. We’re nonetheless of the opinion that the greenback can discover a bit of stability this summer season on greater inflation and delayed Fed fee cuts – however clearly this view stands towards pervasive greenback pessimism available in the market.”
“DXY might commerce a 97.00-97.70 vary, however with dangers to the draw back if a robust German Ifo takes EUR/USD a lot greater within the European morning.”
