EURUSD
- EUR/USD remained relatively unchanged at 1.0878, anticipating the release of June's services and composite PMI data for the eurozone. These data are expected to confirm a slowdown in the consumption-driven economic recovery.
- A flag-like pattern seems to be emerging around the 1.0900 level in EUR/USD, indicating a certain hesitation in the market to sustainably push the pair above the 1.10 level.
- The U.S. dollar slightly strengthened during the early European trading hours on Wednesday, influenced by weak Chinese activity data that dampened risk sentiment. Market participants awaited the release of minutes from the Federal Reserve's most recent meeting.
- The impact of the dollar's gains has been limited as U.S. traders return from the Independence Day holiday and shift their focus to the release of the minutes from the June Federal Reserve meeting.
| SMA (20) | Slightly Rising |
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| RSI (14) | Slightly Falling |  | ||
| MACD (12, 26, 9) | Slightly Falling | |
Closing statement: EUR/USD remained relatively stable as traders awaited the release of eurozone's PMI data, which is expected to confirm a slowdown in the consumption-led economic recovery. The pair displayed a flag-like pattern around the 1.0900 level, suggesting market reluctance to push it sustainably above 1.10. Meanwhile, the U.S. dollar experienced slight strengthening influenced by weak Chinese data, but its gains were tempered as U.S. traders returned from the holiday and turned their attention to the Federal Reserve meeting minutes.
GBPUSD
- GBP/USD declined by 0.1% to 1.2703, anticipating the release of U.K. services PMI data for June.
- Expectations for upcoming interest rate hikes by the Bank of England remain strong, with implied rates indicating a potential 50 basis point hike and cumulative rate increases estimated at around 125 basis points by December 2023.
- The DXY, which tracks the dollar against six major currencies, experienced a 0.1% increase, reaching 102.800.
- The dollar received a boost on Wednesday, driven by its safe haven status, following a private survey indicating that China's services activity expanded at its slowest pace in five months in June. This data adds to the evidence of a sluggish post-pandemic recovery in the world's second-largest economy.
| SMA (20) | Slightly Rising |
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| RSI (14) | Slightly Falling | |
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| MACD (12, 26, 9) | Slightly Falling | |
Closing statement: GBP/USD weakened ahead of the release of U.K. services PMI data. Implied rates for future Bank of England interest rate hikes remain firm, with expectations of a 50-basis point increase and cumulative rate rises of approximately 125 basis points by the end of 2023. The dollar, tracked by the DXY, edged higher as it benefited from its safe haven status amid concerns over China's slower services activity growth, reflecting challenges in the country's post-pandemic recovery.
GOLD
- Gold prices stabilized on Wednesday following slight gains overnight, as investors awaited the release of the minutes from the Federal Reserve's June meeting. Meanwhile, copper prices declined due to concerns over a potential resurgence of a trade war between the United States and China.
- The Federal Reserve kept interest rates unchanged after a series of ten consecutive rate hikes but signaled the likelihood of two more increases later this year, with one widely anticipated in July.
- The upcoming release of the Fed's minutes is expected to provide investors with more insight into the ongoing debate regarding the balance of risks discussed by Fed Chair Jerome Powell, specifically the delicate balance between doing too little or going too far with policy tightening.
- Market expectations currently indicate an 88% probability of the central bank raising rates by 25 basis points in July.
Closing statement: Gold prices remained steady as investors awaited the Federal Reserve's minutes from its June meeting, while copper prices dipped amid concerns about a potential U.S.-China trade war. The Fed's decision to keep rates unchanged and their intention to raise rates twice more this year, including a highly anticipated hike in July, has heightened interest in the minutes for further clarity on the Fed's approach. Market sentiment is currently leaning towards a high probability of a 25-basis point rate increase in July, reflecting expectations of monetary policy tightening.
CRUDE OIL
- Crude oil prices declined on Wednesday, reversing some of the earlier gains triggered by Saudi Arabia and Russia's announcement of extended and deeper output cuts for August. Concerns over a global economic slowdown weighed on market sentiment and led to the downward pressure on oil prices.
- The ongoing worries about a slowdown in the global economy, coupled with expectations of further interest rate hikes in the United States and Europe, added to the downward pressure on oil prices.
- A private sector survey revealed that China's services activity expanded at the slowest pace in five months in June, reflecting weakened demand and dampening the momentum of the post-pandemic recovery.
- Traders are closely monitoring industry data on U.S. crude and product inventories, which will be released by the American Petroleum Institute later today, in order to gauge demand trends.
| SMA (20) | Slightly Falling | |
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| RSI (14) | Neutral | ||
| MACD (12, 26, 9) | Slightly Rising |
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Closing statement: Crude oil prices retreated as concerns about a global economic slowdown overshadowed the positive impact of extended output cuts by Saudi Arabia and Russia. Lingering worries about the global economy, anticipation of interest rate hikes, and a slowdown in China's services sector contributed to the downward pressure on oil prices. Traders are eagerly awaiting the release of industry data on U.S. crude and product inventories to gain insights into demand patterns and further assess market conditions.
DAX
- After the market close on Tuesday, Germany stocks showed mixed performance. The Financial Services, Retail, and Food & Beverages sectors experienced gains, leading to higher share prices. However, losses were observed in the Construction, Industrials, and Insurance sectors, resulting in lower share prices.
- European stock markets weakened on Wednesday as investors expressed concerns over signs of China's faltering economic recovery. This apprehension was heightened ahead of the release of important regional services activity data.
- The DAX index in Germany registered a decline of 0.42%, while the CAC 40 in France experienced a 0.35% decrease, and the FTSE 100 in the U.K. traded down by 0.39%.
- During European trading hours, investors focused on the release of the eurozone's final services and composite PMI (Purchasing Managers' Index) data for June. This data was expected to confirm a slowdown in the consumption-led economic recovery.
| SMA (20) | Slightly Rising |
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| RSI (14) | Falling | |
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| MACD (12, 26, 9) | Slightly Falling | |
Closing statement: Germany stocks displayed a mixed performance, with gains in certain sectors counterbalanced by losses in others. European stock markets weakened as investors remained cautious about China's economic recovery. The DAX index in Germany, along with other major indices, experienced a decline. The release of the eurozone's services and composite PMI data for June was closely monitored to assess the pace of the region's economic recovery.