There was a push and pull in trading yesterday, with stocks rallying amid comments from Fed Chairman Powell before reversing course to end the day lower. This still points to tougher pastures at the moment for equities and futures are pointing a little lower as we look to European trade.
But the yen is the big mover for the day amid a pullback in USD/JPY from 136.00 to 135.15 before holding around 135.40-50 for now. While a breakout upside still seems like the likely path, intervention risks increase before 140.00 and that presents additional cautious tones.
Elsewhere, the dollar is stable after a slight decline against the euro and the pound yesterday, although it maintained a decent lead against the commodity currencies. The Aussie is again lagging today with AUD/USD down 0.5% to 0.6890 amid waning risk appetite.
Looking ahead, Eurozone PMI data will offer something to chew on in the upcoming session. We will see how resilient the economy is in the wake of more persistent inflation and whether fears of a recession by the end of the year become more justified.
0645 GMT – France June business confidence0715 GMT – France June flash manufacturing, services, composite PMI0730 GMT – Germany June flash manufacturing, services, composite PMI0800 GMT – Eurozone June flash manufacturing, services, composite PMI0830 GMT – UK June flash manufacturing , services, composite PMI1000 GMT – CBI reported UK retail sales in June
That’s all for the upcoming session. I wish you all the best days ahead and good luck with your trading! Stay safe there.
This article was written by Justin Low at www.forexlive.com.