There have been no larger moves in the FX market or elsewhere thus far possibly due to some uncertainty regarding today’s main event which is a release of the FOMC’s minutes.
The Australian dollar has been among the best performing currencies after the Asian for all a mediocre reading of Chinese services PMI. The indicator for June came in at 51.6 compared with the prior one at 52.8. Although, it is still above 50 points there are first cautionary signals. First of all, composite PMI turned out to be the weakest in a year as service businesses noted the poorest increase in new orders for over a year. Moreover, a lot of companies mentioned subdued market conditions which had weighed on spending.
Having the FOMC’s minutes still ahead, investors seem to be reluctant as for investing in stock markets. As a result, the European bourses have kicked off the day with some cautiousness receiving no support from the Wall Street where there was no session yesterday due to Independence Day. Either way, losses are quite restricted as of now and larger moves could emerge coming into an end of the session when US traders enter the day.
The Turkish lira is one of the worst performing currency in an emerging markets bloc. For that reason, it’s worth taking a closer look at the USDTRY as the pair has been sliding since the beginning of this year being mainly steered by the feeble macroeconomic data coming from the US economy. As a matter of fact, that scenario could have already come to an end, at least from a technical standpoint. Let us set out a few relevant aspects pertaining to the Turkish currency.
Admittedly, European PMI readings are already behind us, there are yet a few macroeconomic releases worth looking at with the FOMC’s minutes being a cherry on top.
This is a very interesting week from the US dollar perspective and the key market events are scheduled for the next three days: the FOMC minutes today, the ADP report on Thursday and the NFP report on Friday. In that analysis we highlight the key message that investors will want to see in the document about to be published at 7pm BST today.