Daily insights for CFD traders – ECB meeting minutes in focus

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Market Recap

Overnight, Wall Street finished stronger in a shortened session, with bond yields falling on weaker data as US ISM services hit 48.8 in June. The S&P 500 hit an all-time high of 5,535 on bets that lower rates will keep corporate profits strong. The USD was sold across the board, with the AUD hitting a high of 0.67335 and finishing at 0.6706 for the day. The Dow Jones Industrial Average fell 23.85 points, or -0.06%, to 39,308. The S&P 500 gained 28.01 points, or 0.51%, at 5,537.02, and the Nasdaq Composite rallied 159.54 points, or 0.88%, to 18,188.3.

AUD/USD rallied on Wednesday, trading at 0.6700 after weaker US economic data. Equities were stronger, and the weak US ADP labour market report, along with a sluggish services sector, led US markets to increase the likelihood of a Fed rate cut by about 10% for September. This data pushed the USD DXY and US bond yields lower, with the 10-year yield dropping 7bps to 4.36%.

NZDUSD climbed above 0.6100, reaching just below 0.6130 before pulling back, benefiting from a weaker USD. If the US NFP data tomorrow night exceeds expectations, we might see bond yields and the USD rise, especially with the timing around a holiday weekend. Conversely, a weaker NFP report could boost major currencies against the USD and possibly push NZD towards 0.6150.

Day Ahead

Today, the minutes for the June ECB meeting are due out. This will provide more insight into the debate and discussion surrounding the policy decision earlier this month. Markets may react to any excerpts surrounding when (and under what conditions) participants believed it would be appropriate to begin reducing the fed funds rate.

Economic Data to Watch

  • AU – May Trade Balance
  • UK – Jun New Car Registrations y/y
  • UK – Bank of England Bank Liabilities/Credit Conditions
  • UK – Jun DMP 1 Year CPI Expectations
  • UK – Jun S&P Global UK Construction PMI
  • EU – ECB Publishes Account of June Policy Meeting
  • CA – Jun S&P Global Canada Composite PMI

Mid-Market Rates

Currency PairMid-Market Rate


The information provided in this daily market update is for informational purposes only and should not be considered as financial advice. Trading Forex and CFDs involves significant risk of loss and may not be suitable for all investors. Past performance is not indicative of future results. CA Markets does not guarantee the accuracy or completeness of the information provided, and we recommend consulting with a qualified financial advisor before making any trading decisions. Users are solely responsible for their own trading activities and decisions.