The US Dollars ongoing strength has enabled it to put heavy pressures on both the Euro and Sterling. Cable has opened this morning just above the 1.3800 handle, while EURUSD currently sits trading below the 1.1850 mark. The upbeat Dollar was supported yesterday as US ADP Employment Change for June came out better than expected, forecasted at 600K, the actual reading was released at 692K. With a packed schedule of releases today, the market will be looking to these figures for further direction.
GBPUSD opened the day at 1.3846 and struggled as the Dollar’s demand increased. As fears heighten over the surge in Delta variant COVID-19 cases in the UK, Sterling’s gains have been somewhat capped. Cable was able to finally finish the session at 1.3814.
GBPEUR in contrast was able to make subtle gains on Wednesday. The pair started the day at 1.1639 and closed at 1.1649.
EURUSD came under increasing pressure on Wednesday as the Greenback did its best to suppress the Euro. The pair opened the midweek session at 1.1895 and closed the day off at 1.1649.
On the data front, PMIs are the focus today. At 08:55 German Markit Manufacturing PMI for June came out better than forecasted at 65.1. At 09:00 Eurozone PMI beat expectations by 0.3 to give a reading of 63.4. At 09:30 UK Markit/CIPS Manufacturing PMI is released. Then in the afternoon, US Continuing Jobless Claims, Initial Jobless Claims and Jobless Claims 4-week Average will be released at 13:30. Then from 14:45 US Markit Manufacturing PMI, ISM Manufacturing PMI and Construction Spending will be released.
