Forex Today: The UK’s Labour Party is aiming for a landslide victory

Pablo Piovano FXStreet

Another data-driven sell-off motivated the Greenback to recede to multi-day lows amidst declining US yields across the board and ahead of the Independence Day holiday on July 4. In addition, markets are expected to closely follow the UK general elections amidst the run-up to the French second round next weekend.

Here is what you need to know on Thursday, July 4:

The USD Index (DXY) accelerated its decline on the back of poor prints from the US docket and ahead of the Independence Day holiday on Thursday.

EUR/USD finally surpassed the 1.0800 barrier amidst extra weakness in the Greenback. On July 4, the ECB will publish its Accounts of the June meeting.

GBP/USD continued to outperform its risk-linked peers and rose to three-week highs well north of 1.2700 the figure. All the attention is expected to be on the UK general elections on July 4, where the Labour party is seen achieving a significant victory. In the docket, the S&P Global Construction PMI is due along with New Car Sales.

USD/JPY remained in the upper end of the recent range and near multi-decade tops in the boundaries of 162.00. The usual weekly Foreign Bond Investment figures are only due on July 4.

A sharp rebound saw AUD/USD finally breaking above the key 0.6700 hurdle on the back of positive domestic data and further selling pressure in the US Dollar. The Balance of Trade results will be published on July 4.

WTI prices resumed their uptrend on the back of a bullish weekly report from the EIA, prospects of higher demand and a weaker dollar.

Gold prices climbed to multi-session tops and flirted with the $2,365 mark per ounce troy, backed by selling pressure in the Greenback, lower US yields, and expectations of interest rate cuts. By the same token, Silver rallied more than 3% to surpass the key $30.00 mark per ounce and revisit multi-day peaks.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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