Market today, has the traders heading out the door for the 4th July holidays, although stocks rallied as markets get set for a dismal Nonfarm Payrolls to result to force the hand of the Federal Reserve this week and confirm the beginnings of a new easing cycle, to blow some hot air into the deflating bubble again.
Currencies are trading in a narrow range despite Trump's comments and amid the US Independence Day holiday. EUR/USD moved up to 1.1312 yesterday but fall back to 1.1280 while GBP/USD is on the lows again as Brexit uncertainty remains a key obstacle for business optimism. USD/JPY pair continued showing some resilience below 200-hour SMA and managed to gain some positive traction on Thursday.
It’s a thin economic calendar today, with Retail Sales in Euroland for the month of May are due at 09:00 GMT along with speeches by ECB’s P.Lane, L.De Guindos and A.Enria. No key data from the UK are expected and US markets are off due to Independence Day holiday.
It is worth recalling that volatility and trade conditions are expected to remain marginal throughout the day in response to the Independence Day holiday in the US markets.
Oil prices were down on Thursday after the Energy Information Administration (EIA) reported a set of bearish U.S. crude inventories data. The EIA showed crude stockpiles fell 1.1. million barrels in the week ending June 28, below expectations of a draw of about 2.96 million barrels.
Gold has stabilized in the low $1,400 after challenging the highs early on Wednesday, as the prevalent risk-on mood undermined the commodity’s safe-haven status. Prices were little changed on Thursday as traders weighed gains in stock markets and a potential rate cut by the U.S. Federal Reserve.