A rebound in production and a slower drawdown in inventories resulted in a more modest pace of contraction for ISM manufacturing in June. But worries about tariffs continue to crimp supply, leaving manufacturers fraught with trade-offs for holding inventory as pricing pressure builds.
Author
Wells Fargo Research Team
Wells Fargo
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EUR/USD slides 0.05% as the week begins, courtesy of broad US Dollar strength, amid choppy trading as traders brace for the Federal Reserve monetary policy decision. At the time of writing, the pair trades at 1.1637 after hitting a daily high of 1.1672.
GBP/USD found little momentum on either side of the line on Monday, with the Cable pair churning chart paper just north of the 1.3300 handle to kick off a fresh trading week. Broad-market sentiment is largely hinging on an upcoming interest rate decision from the Federal Reserve due during the midweek, and investors are shunning stepping too far into either the bullish or bearish side in the runup to one of the biggest rate calls of the year.
Gold keeps its range trade intact around $4,200 as the Fed’s two-day monetary policy meeting begins later on Tuesday. US Dollar loses ground with Treasury bond yields even as the mood turns cautious. Gold’s daily chart shows that the bull-bear tug-of-war will likely continue ahead of US jobs data.
Privacy coins, including Canton and Zcash, alongside Luna Classic, rank among the top gainers in the broader cryptocurrency market over the last 24 hours, with double-digit gains.
This week we get a lot of data releases but the biggie is all those central bank decisions. Canada, Australia and Switzerland are expected to stay on hold, but the Fed is expected to cut.
Bitcoin, Ethereum, and Ripple record a minor recovery on Monday, starting the week on a positive note. The retail demand for major cryptocurrencies remains strong despite outflows from Bitcoin and Ethereum Exchange Traded Funds (ETFs).
