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Slow day in the market as trade in U.S. finished early

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Slow day in the market as trade in U.S. finished early

Wednesday was a slow day in the market as trade in the US finished early ahead of the 4th of July public holiday.

EURUSD drifted slowly lower after the open in Europe, ahead of key manufacturing data across the Eurozone. Italy, France, Germany and the Eurozone as a whole all released separate purchasing manager’s index (PMI) data, which on the whole came in below forecasts. The Italian PMI came in at 45.8, below the forecast figure of 47 and the previous month’s figure of 46.5. The German PMI fell to 50.4, from 51.3 in June and below expectations of 51.3. The Eurozone PMI fell to 48.3 from 48.6 in June and below the forecast 48.6. However, France’s PMI figure beat expectations, coming in at 47.4, ahead of the 46.5 expected by analysts. EURUSD reacted badly to this mixed news and the pair moved 50 pips lower, on strong volume, to touch 1.2935 before Eurozone retail sales data showed that retail sales in the Eurozone had expanded during the last month by 1%, beating expectations for a gain of 0.3%. EURUSD reacted well to this good news and the pair rose back to 1.2960 before trending higher throughout the rest of the day. EURUSD finally finished at the close in New York at 1.30051, up 0.25%.

GBPUSD had a relatively subdued day trending higher, after good news about the UK economy. The UK’s purchasing manager index for services rose to 56.9 in June, beating expectations of 54.5 and significantly above the 54.9 figure reported for the previous month. GBPUSD finished the day at the close in New York, at 1.52741, up 0.83% or 125 pips.

USDJPY broke through the key Y100 level in early European trade before finding support around the Y99.40 level. The pair traded in a tight range during early American trade before breaking out of their range and pushing higher on strong volume and finding further support around Y99.70. USDJPY traded slowly higher on light volume throughout the rest of the trading day, in line with rising US markets. The pair broke back above the key Y100 level after the ADP employment data came out in New York, which beat estimates, before falling slightly and finishing the day down at Y99.90. The pair ended the day down 0.85%, or 86 pips at Y99.9 after as strong performance yesterday.

AUDUSD traded in a range between 0.9060 and 0.9100 for most of the European session. The pair rapidly fell on quite low volume after the ADP jobs report, touching a low of 0.9030 before finding support and rallying higher to finish the day at 0.9060. AUDUSD finished the day down 0.87% overall, or 79 pips at 0.9060.

USDCHF had a volatile morning and traded in a wide range for most of the European session. The pair sew-sawed between 0.9510 and 0.9480 on strong volume before quickly dropping 35 pips, from 0.9480 to 0.9445 in a five minute bar just after 11:00 New York time. The pair quickly bounce however, moving up to 0.9470 before settling. The pair traded on relatively low volume for the rest of the day and stayed in a tight range. USDCHF finished the day down 0.45%, or 42 pips at 0.94701 at the close in New York.

USDCAD traded in a wide range during the day, pushing higher the poor Eurozone PMI data but starting a rapid descent after the ADP jobs report. The pair slowly during European trade, touching 1.0550 in early US trading before falling 15 pips after the ADP jobs report. The pair then bounced, hitting a high of 1.0565 finding resistance and then trending lower throughout the afternoon. The pair traded on heavy volume throughout the morning in the American session but the volume rapidly dissipated as the pair moved to their lows of the day. USDCAD finished the day down 0.34%, or 36 pips at 1.0512.

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