What drives the market on July 1?
The market sentiment is mixed. Let’s look at most interesting movements on the market today.
China is cautious on rates this time notwithstanding Fed lift
On Thursday, China's major financial institution left interest rates for open market operations intact, shrugging off an overnight soar in the Fed’s key policy rate.
The People's Bank of China didn’t provide comments on its rationale for keeping rates intact, after it followed a Fed lift within hours in March.
However, the Chinese Yuan is currently on steadier footing, while domestic liquidity conditions happen to be relatively tight.
Financial markets had been divided as for whether the PBOC would lift short-term rates once again in lockstep with the major US bank. By the way, China's short-term money rates along with bond yields have already been ascending.
Market participants pointed out that in June liquidity turns to be traditionally tight, and they still remember a cash crunch in 2013, which sent money rates up and shocked global markets.
The Chinese Yuan has ascended 2.3% so far this year, having dropped 6.5% last year.
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Will the NFP push the USD again?
Non-Farm Payrolls data will be released on Thursday at 15:30 MT time.
Will the European labor dynamic boost the EUR?
The European unemployment rate will be announced on Thursday at 12:00 MT time.
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The RBA: keeping the AUD alive?
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
What will affect markets on July 3?
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
How to trade on July 2?
The risk-on tone is back on the market again. Let’s look at main trading opportunities.
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