IFX Market Report: Monday 6th July 2020

Friday was largely a non-event, with the US public holiday ensuring a tight trading range throughout the day.

Sterling showed no reaction throughout the session and remained flat versus its major rivals. The lack of volatility was also aided by the premature conclusion of Brexit talks last week, curtailed on Thursday. The EU had asserted that serious divergences remain in negotiations, while Boris Johnson said on Friday that he was more positive that a post-Brexit trading deal could be agreed, but that the UK could leave without a comprehensive deal, if needed.

Implied volatility levels for sterling remain higher than that of other major currencies.

There is a distinct lack of economic data this week and investors will likely be focusing on Brexit and any Bank of England clues to short-term monetary policy.

GBPUSD opened at 1.2453 and closed at 1.2466

GBPEUR opened at 1.1088 and closed at 1.1089

With the Independence Day public holiday in the US on Friday, the dollar remained on the level throughout.

Markets today are awaiting non-manufacturing PMI data this afternoon that is expected to show the services sector stopped contracting in May, which would boost hopes of economic recovery from the pandemic.

The remainder of the week is looking light on the economic calendar.

The euro followed the trend on Friday and barely moved throughout the day.

It’s a fairly light week for data releases, with the single currency unlikely to be hugely impacted. Today sees retail sales figures released for the zone as a whole, which are usually muted because of separate, earlier data from France and Germany. Later this week could see the publication of economic forecasts from the ECB.

EURUSD opened at 1.1231 and closed at 1.1242

Older posts
Newer posts