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The Greenback held on to the top spot throughout the day, getting an additional boost from upbeat data and rising bond yields.

On the flip side, commodity currencies found themselves at the bottom of the forex heap as risk aversion lingered.

  • U.S. final Markit manufacturing PMI upgraded from 54.6 to 55.4 in June
  • U.S. ISM manufacturing PMI up from 58.7 to 60.2 vs. 58.2 forecast
  • U.S. construction spending up by 0.4% vs. 0.5% forecast, 0.9% previous
  • New Zealand NZIER business confidence index slipped from -11 to -20
  • Canadian banks closed for the holiday

Major Events/Reports:

Mostly upbeat U.S. data

Manufacturing PMI readings, both from Markit and ISM, turned out stronger than expected for the month of June, keeping Fed tightening expectations intact.

Markit upgraded its final manufacturing PMI reading from 54.6 to 55.4 to reflect a much stronger pace of expansion than initially reported. Components revealed that this was mostly due to stronger input prices, even as output and new orders grew at their slowest pace since November last year.

Meanwhile, the ISM version of the index climbed from 58.7 to 60.2, outpacing the consensus at 58.2. The component for prices also came in higher than expected at 76.8 versus 74.3 but this was lower than the earlier 79.5 read.

Still, the components for production, new orders, and imports advanced during the month. The index for employment, on the other hand, ticked lower from 56.3 to 56.0 to signal a potential decline in the NFP figure due Friday.

Trade tensions still in play

Another week, another round of trade-related headlines! Freshly-elected Mexican President Andres Manuel Lopez Obrador a.k.a. AMLO a.k.a. harsh Trump critic vowed to pursue NAFTA negotiations.

So far so good, though, as AMLO graciously received Trump’s congratulations and spoke of seeing “friendly relations” with Uncle Sam as the leaders exchanged pleasantries over the phone.

The Donald suggested that they could even come up with a separate agreement with Mexico, adding that U.S. trade officials are also set to meet with the EU soon to discuss trade. Prior to this, Trump mentioned that the EU was as bad as China when it comes to this issue.

Even so, U.S. equities managed to score some wins as the tech sector advanced.

  • Dow 30 index is up 35.77 points to 24,307.18 (+0.15%)
  • S&P 500 index is up 8.34 points to 2,721.71 (+0.31%)
  • Nasdaq is up 57.38 points to 7,567.69 (+0.76%)

U.S. bond yields were also in the green while commodities lagged.

  • 5-year yield rose 1.7 basis points to 2.755%
  • 10-year yield rose 0.9 basis points to 2.869%
  • 30-year yield rose 0.3 basis points to 2.992%
  • Gold dipped to $1,242.09 per troy ounce (-0.11%)
  • WTI crude oil is down to $73.98 per barrel (-0.23%)

Major Market Mover(s):


Dollar domination was the name of the game thanks to safe-haven flows, a positive performance in U.S. markets, and mostly upbeat economic data.

EUR/USD slid from 1.1640 to a low of 1.1591, GBP/USD fell from 1.3164 to 1.3095 before pulling up to 1.3124, USD/JPY is up to 110.98, and USD/CHF climbed back to .9940.


The Aussie lagged behind its peers as risk aversion settled in while gold failed to take advantage of safe-haven demand.

AUD/USD slipped from .7362 to a low of .7310 then pulled up to .7322, AUD/JPY tumbled from 81.45 to the 81.00 support before bouncing to 81.28, EUR/AUD is up to 1.5851, AUD/CAD dropped to a low of .9668, and GBP/AUD reached a high of 1.7951.

Watch Out For:

  • 1:30 am GMT: Australia’s building approvals (0.1% rebound expected after 5.0% decline)
  • 4:30 am GMT: RBA interest rate statement (Here’s what to expect.)