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The Day Ahead:

For the EUR

It’s a busy day ahead on the economic calendar. Prelim June private sector PMIs are due out of France, Germany, and the Eurozone.

We can expect plenty of influence from the numbers, though the services PMI should garner greater interest.

The ECB had been looking towards a service sector-driven recovery before the COVID-19 pandemic. This reliance may be even greater now as unemployment bites across the Euro bloc.

At the time of writing, the EUR was down by 0.20% to $1.1239. Negative chatter from the U.S administration drove the EUR into the red early on.

For the Pound

It’s a relatively busy day ahead on the economic calendar. June’s prelim private sector PMIs are due out later today.

Expect the market focus to be on the Services PMI that will need to see a marked improvement. It could get a little dicey for the Pound if any weak numbers are accompanied by negative Brexit updates…

At the time of writing, the Pound was down by 0.18% to $1.2446, with risk aversion weighing.

Across the Pond

It’s a busy day ahead on the U.S economic calendar. Key stats include new home sales figures for May. And prelim June private sector PMIs.

Again, we would expect the Services PMI to have the greatest impact on the day. Don’t expect too much from the new home sales and manufacturing PMI, barring particularly dire numbers.

For the markets, an upward trend from April’s historic lows would need to continue across the private sector. Any weak numbers and expect risk aversion to sweep across the global financial markets.

Away from the numbers, geopolitics and COVID-19 news from the U.S will remain a key driver.

Monday’s announcement by Navarro drove Dollar demand early.

At the time of writing, the Dollar Spot Index was up by 0.14% to 97.178.

For the Loonie

It’s another particularly quiet day ahead on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.

A lack of stats will leave the Loonie in the hands of market risk sentiment and COVID-19 news and updates and PMI numbers.

Any disappointing PMI numbers from the Eurozone or the U.S would likely test sentiment towards the economic outlook… The markets are hopeful of a V-shaped economic recovery. Today’s PMIs could give some idea of what lies ahead.

An end to a trade agreement between the U.S and China would overshadow any positive PMIs, however.

At the time of writing, the Loonie was down by 0.24% to C$1.3554 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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