Euro is rebounding against US dollar
Stock indices from the Old Continent are trading broadly higher
The US PMIs to conclude this week’s calendar
In Europe majority of the major stock benchmarks are posting decent gains today. It is interesting as we are also observing advance of the common currency. AUD is the strongest currency from the G10 basket along with the SEK. Steep declines are observed on USD and JPY. Precious metals are trading higher but gold lags behind silver and platinum. On the oil market we are observing gains ahead of the OPEC decision.
A package of preliminary services PMIs from European economies for June turned out to be a decent surprise disclosing a wider divergence between services and manufacturing though. All in all, the shared currency benefited from readings even as they do not herald any substantial acceleration of economic growth in the second quarter.
Major cryptocurrencies have taken a hit over the recent hours with Bitcoin, Litecoin and Ethereum being the most afflicted. From a technical point of view Bitcoin seems to be in a particularly important place, we mean a short-term trend line where the most famous digital currency has stalled thus far.
Christian Baeumler, one of the top CDU officials, stated that his party may have to prepare to compete with the CSU in the Bavaria’s state elections. This means that the politician does not rule out the possibility of breaking up the CDU-CSU alliance over the migration issues. This may be a big stepback as the CSU party holds 46 seats in Bundestag.
While the Japanese yen rarely responds to its domestic economic data, this time a clearly weakish core inflation indicator might stand behind the JPY relative underperformance. The currency is trading flat in the morning European trading even as other major currencies are on the rise against the greenback.
While the European PMIs are sending warning signs the same cannot be said about their US counterparts. The services gauge sits just a notch below its highest levels since mid-2017 and even a minor pick-up may bring it to the multi-year highs.