Forex Market Recap (04-09 July 2021)

There weren't any significant economic or geopolitical catalysts to spark any notable moves in the forex markets this past week. COVID-19 updates pointed to an accelerated rate of new cases, especially in Asia. This prompted Japan to declare a state of emergency and ban spectators from the upcoming Olympic event. Nonetheless, we heard from the World Health Organization to urge extreme caution against completely lifting public health measures.

USD:

• ISM Services PMI at 60.1 in June vs 64.0 in May
• Fed staying patient in terms of tightening monetary policy
• Job vacancy numbers are increasing
• Optimism falls despite jobs recovery
• Jobless claims rose to 373k, as job growth slows
• Fed officials warn Delta variant is a threat to the economy

EUR:

• Eurozone growth hits 15-year high
• Sentix Investor Confidence at 29.8 in July vs 28.1 in June
• German Manufacturing in May new orders down -3.7% in May
• German Industrial Production at -0.3% in May
• Retail trading volume u 4.6% in the eurozone
• French trade balance at €6.6B
• German exports at 0.3% in May
• EU warns on the Delta variant spread
• ECB won't seek deliberate inflation overshoot

GBP:

• Strong recovery in the UK service activity continues, but cost inflation hits record high during June
• Lockdown to end on July 19, PM Boris Johnson warns that pandemic is not over
• UK house prices fell in June as the full stamp duty holiday ended
• The UK economy grew just 0.8% in May as manufacturing troubles caused the rebound to lose steam

CAD:

• BoC survey: Q2 business sentiment improves, economic recovery seen broadening
• Ivey PMI shows activity expanding at fastest pace in three months
• Large job gains in June with more to come

JPY:

• Services economy sees softer fall in business activity
• Wages in May show largest monthly gain since June 2018
• Households cut spending from April level amid restrictions
• Japan to declare COVID-19 emergency for Tokyo as it mulls Olympics without fans
• Olympics will ban spectators after Japan declares state of emergency

AUD:

• MI inflation gauge rebounded by 0.4% after the previous 0.2% dip
• Retail sales up by 0.4% vs projected 0.1% uptick
• ANZ job advertisements rose by 3.0% in June
• Building approvals tumbled by 7.1%
• The Reserve Bank of Australia does not expect to raise rates before 2024
• Sydney enters another week-long lockdown on Delta variant spread

NZD:

• Business outlook bounces back in Q2
• BoNZ joins ASB in predicting OCR will rise in November