Charts and Market Updates July 01, 2020

Good day traders! Check now the most recent charts and market updates for today’s session. Learn more about analysis and be updated on the current happenings in the market!

EURUSD

The European Union’s big four – Germany, France, Italy, and Spain – posted positive figures on their Manufacturing PMI reports today, July 01. Among these countries, only France was able to record expansionary points at 52.3 in June compared to May’s 40.6 points figure. Meanwhile, Germany, Italy, and Spain were 5 points below the expansionary level. Figures were at 45.2, 47.5, and 49.0 points, respectively. Despite this, their massive jump from their previous reported data will support the single currency against the US dollar in the coming sessions. The United States also released several reports today including the ADP non-farm employment change. The change in employment for the payroll data of approximately 400,000 business clients of ADP went down to 2,369K. This was lower than the prior month’s figure at 3,065K and expectations of 3,000K. The lower figure disappointed investors and is expected to reflect in the pair’s movement.

USDJPY

Investors shrug off weak economic data for Japan with the prospect of near-term recovery following the lifting of the country’s national emergency. Japan’s factory output was seen dropping for the fourth consecutive month. May’s MoM report dropped by 8.4% to 79.1 points, the lowest level since the 2008 Global Financial Crisis. Meanwhile, Tokyo’s 2.9% unemployment rate which represents 4 million workers are still way below the average rate of unemployment of advanced economies. Meanwhile, the US government intervention on the economy and the Fed’s bazooka will continue to keep the US economy afloat. Cumulatively, these US institutions injected more than $6 trillion to its economy. However, investors are worried how long they will and can support the local economy. Jobless claims were still high at 1,480K and the ADP non-farm report of 3,065K jobs addition were still low compared to the cumulatively jobless claims since March.

GBPAUD

Both Australia and the UK entered the expansionary phase in June. Figures for the report were 51.2 and 50.1 points, respectively. However, most of their reports were still a disappointment to investors. Britain’s GDP QoQ posted -2.2% growth while business investments QoQ were at -0.3%. On the other hand, Australia’s import and export reports were still sluggish at -4.0% and -6.0%, respectively. Investors were anticipating the British pound to thrive against the AUD in the coming months due to a possible reversal in the UK’s reports. UKs expectations for the month of June were way higher compared to May’s report. Meanwhile, Australia’s import and export were seen having the same figure for June. Also, investors noted that Britain’s performance was better-than-expected given that the country is facing two crises. The coronavirus pandemic and the Brexit transition are currently putting weight on the country’s economic performance.

GBPJPY

Despite the weak figures for the United Kingdom, investors are confident that it will survive throughout the pandemic. Britain recently published its GDP QoQ report which saw a -2.2% contraction for the first quarter of the fiscal year. This was the biggest decline in over 40 years. Analysts are also anticipating more disappointing results for the upcoming quarters. Despite this, investors are optimistic that once the Brexit transition ended, Britain will be able to fulfill its obligations under the post-Brexit trade deals with several countries. It might also sign a deal with America given the fallout of the US-EU relations and the current US-China tension. Meanwhile, the third largest economy in the world saw 4 million of its citizens being unemployed due to the pandemic. Japan unleashed its biggest cumulative stimulus to date at $1 trillion. However, these amounts have already dried up after the national emergency in the country was lifted.