The USD slips, oil extends gains, equity markets are up, and US yields ease amid optimism over a peace deal with Iran. The U.S. dollar slips modestly in early trading as optimism over progress in U.S.-Iran negotiations reduces safe-haven demand, leaving the greenback near six-week lows. This week's focus remains firmly on the U.S. labour market, with today's ADP Employment Change report ahead of Friday's closely watched nonfarm payrolls release. Global equity markets are mostly higher as resilient corporate earnings continue to support investor sentiment despite renewed Middle East shipping risks. U.S. futures are mixed, European equities are mostly higher, and markets remain focused on the durability of AI-driven earnings growth as the reporting season continues. Elsewhere, oil and gold prices rebound as renewed concerns over Middle East shipping disruptions offset optimism around U.S.-Iran negotiations, while bitcoin eases as investors take profits following recent gains. In focus today: Markets will be watching the U.S. ADP Employment Change, ISM Services PMI and EIA crude oil inventories, along with Canada's Ivey PMI, with the releases expected to provide fresh direction for currency markets.
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In currency markets. Against the USD, the Japanese yen traded slightly weaker after last week's historic U.S.-Japan intervention, although it continues to hold most of its recent gains. Markets remain focused on the prospect of further coordinated intervention and the possibility of additional Bank of Japan rate hikes, while easing tensions with Iran and lower oil prices have reduced safe-haven demand for the U.S. dollar.
In commodity markets. WTI +1.16% | Nat Gas +0.15% | Gold +1.51% | Silver +2.02% | Copper -0.02% | Palladium +1.15% | Coffee +1.70% | Cocoa +4.76% | Soybeans -0.49% | Wheat +0.59%
CAD is sidelined in early trading as investors look ahead to Friday's Canadian employment report for fresh insight into the strength of the labour market and the outlook for Bank of Canada policy. Recent trade data showed Canada's surplus widened to a four-year high in June, reinforcing expectations for a stronger second quarter, although markets remain focused on employment as the next key catalyst for the loonie.
EURCAD inches higher as the euro remains supported above 1.1550 while the Canadian dollar trades cautiously ahead of key domestic data. Markets will look to this week's Eurozone retail sales figures and Friday's Canadian unemployment report for fresh direction on the cross.
EUR holds steady above the 1.1550 level as the single currency consolidates recent gains, supported by improving risk sentiment and expectations that the ECB will maintain a relatively restrictive policy stance. Investors now turn their attention to today's U.S. ADP Employment Change and ISM Services PMI reports, ahead of Friday's closely watched U.S. nonfarm payrolls release.
GBPEUR holds steady above the 1.1650 level as stronger-than-expected Eurozone and UK services PMI readings have little impact on the cross. Markets remain focused on the broader policy outlook, with the Bank of England's cautious guidance and upcoming Eurozone retail sales data expected to provide the next meaningful direction
GBP holds steady above the 1.3450 level as improving risk sentiment reduces demand for the U.S. dollar, while sterling continues to draw support from resilient UK economic data. Investors now look to today's U.S. ADP Employment Change and ISM Services PMI reports, ahead of Friday's closely watched U.S. nonfarm payrolls release.
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