Forex Today: King Dollar kicks off Q3 with further strength, ISM Manufacturing PMI eyed

Yohay Elam FXStreet

Here is what you need to know on Thursday, July 1:

The dollar remains robust as a new quarter begins, while stocks hold onto their highs. The US ISM Manufacturing PMI stands in a busy day on the calendar, and OPEC+ is set to ramp up output. Cryptocurrencies on the back foot.

End-of-quarter flows have failed to stem dollar strength, and the greenback's gains continue into the new quarter. The currency is rising despite a drop in 10-year Treasuries to 1.47%. Gold stands out with a recovery toward $1,780, levels seen early in the week. The S&P 500 Index closed its most successful first half since 1998.

The ISM Manufacturing Purchasing Managers' Index is set to hold up above 60, pointing to rapid growth in the industrial sector. Investors will eye the employment component as a hint toward Friday's Nonfarm Payrolls, while the Prices Paid figure serves as a gauge of inflation.

ADP's job figures came out better than estimated, yet were mostly shrugged off by markets. Weekly jobless claims are also awaited and are set to show similar levels to last week.

See ISM Manufacturing Preview: Expansion to continue but how severe is the labor shortage?

EUR/USD is trading under 1.1850 ahead of final manufacturing PMIs for June and the release of the eurozone's unemployment rate. On Wednesday, the euro area's inflation figures showed a minor moderation.

GBP/USD is trading closer to 1.38 ahead of Bank of England Governor Andrew Bailey's public appearance and Chancellor Rishi Sunak's highly-anticipated Mansion House speech. Sunak is set to lay out a vision for the economy.

More US June Nonfarm Payrolls Preview: Analyzing major pairs' reaction to NFP surprises

OPEC+ countries led by Saudi Arabia and Russia are expected to announce an increase of around 500 million barrels per day in their meeting, yet uncertainty remains elevated. WTI Crude Oil is hovering above $73. The Canadian dollar is benefiting from the upswing in oil prices and also better-than-estimated Canadian GDP.

Cryptocurrencies have been retreating, with Bitcoin slipping under $34,000 and Ethereum dropping below $2,200. Dogecoin, favored by Tesla founder Elon Musk, stands out with high volatility.

More NFP Preview: Four reasons why June's jobs report could be a dollar downer

Like this article? Help us with some feedback by answering this survey:

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD loses traction after earlier rebound, tests 1.1600

EUR/USD fails to preserve its recovery momentum after rising toward 1.1650 earlier in the day and tests 1.1600. The risk-averse market atmosphere amid the widening conflict in the Middle East and the broad-based US Dollar strength make it difficult for the pair to hold its ground.

GBP/USD stays weak near 1.3350 amid UK stagflation risks

GBP/USD stays in negative territory near 1.3350 in the second half of the day Thursday. The Pound Sterling loses ground amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, while the US Dollar attracts fresh safe-haven demand, weighing on the pair.

Gold struggles to benefit from risj-aversion, drops toward $5,100

Gold turns south in the American session on Thursday and declines toward $5,100. The persistent US Dollar (USD) strength doesn't allow XAU/USD to gather recovery momentum despite markets remain risks-averse due to the deepening conflict in the Middle East.

Crypto Today: Bitcoin, Ethereum, XRP hold weekly gains despite US-Iran war

The cryptocurrency market is gaining strength on Thursday, building on Wednesday's upswing, which saw Bitcoin reach a weekly high above $74,000. Ethereum and Ripple are moderating their recent gains amid uncertainty stemming from the escalating war in the Middle East.

Markets attempt to rally on positive news from Iran

There’s been an abrupt change in sentiment this morning, European stock markets are higher and oil and gas prices are moderating, after comments from Iran’s deputy minister about pre-conflict talks between Iran and the US.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.