03.07.2019: EUR/USD tries to recover; CAD comes under pressure (USD, CAD, Bitcoin)


Markets participants are eagerly waiting for publication of the US official jobs report that is expected to show a 160 thousand increase in private payrolls in June after an abrupt surge in May. The US market is closing earlier than usual today ahead of Independence Day, and the quotes are likely to end this trading session in the green zone. After a brief attempt to test the daily high near the level of 1.1300, the EUR/USD pair moved towards 1.1280 mark despite the fact that the US macroeconomic statistics came short of market expectations. This week is not easy for the euro as the yields on the German funds market are falling. Thus, the yield of 10-year government bonds shrank by 0.40% at the fastest pace on record. Besides, speculations about a possibility of a trade conflict between the USand the EU are intensifying. The single European currency barely changed after publication of the upbeat services PMI reports for the European and German economies. Further on, the American dollar showed sluggish movements today as the prospects for the US and China striking a trade deal in the nearest future became bleak. Amid that, the demand for safe-haven assets increased and the yields of the US Treasuries declined to the lowest levels since late 2016. Meanwhile, the USD/CAD pair experienced another sell-off wave in early American deals and declined below 1.3070, having approached this
year’s low at 1.3057 that was hit last week. The national statistical office of Canada
reported today that the trade surplus came in at 0.76 billion dollars in May which reinforced
expectations of a deficit of 1.5 billion dollars. Additionally, the ADP payroll processor unveiled
the US nonfarm employment change report that showed an increase of 102 thousand jobs versus
the expected 140 thousand. Today the key services PMI report is scheduled
for release in the United States. As for the cryptocurrency market, bitcoin
quotes reversed to the upside and rose above 11 thousand dollars after falling to 9,728.50
dollars overnight. The most traded cryptocurrency plunged last
Thursday, losing almost 4 thousand dollars in a single week. This year, bitcoin skyrocketed by 200% despite
the recent fall. The rally was contributed to the news about
plans of social media giant Facebook to launch its own cryptocurrency Libra in 2020. Tomorrow, on June 4th, the US markets will
be closed. We keep close tabs on the latest developments. Stay tuned!

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