Here is what you need to know on Wednesday, July 1:
The market dumped the greenback in the last trading day of the quarter, although major pair remained within familiar levels for a third consecutive week. The EUR/USD pair is ending June pretty much unchanged just above 1.1200
US Federal Reserve chair Powell testified before the House Financial Services Committee. He referred to the “extraordinary uncertainty” to the economic outlook related to the ongoing pandemic but added that some macroeconomic figures are pointing in the right direction, as the economy entered a new phase sooner than expected. His comments underpinned equities.
The GBP/USD pair recovered towards 1.24, despite Brexit-related headlines indicating the UK is heading into a no-deal exit. EU’s chief negotiator Michel Barnier accused the UK of making unacceptable demands on financial services, saying that the kingdom is trying to secure “easy” access to the bloc’s single market. His comments indicate that no progress has been made in Brexit talks. Meanwhile, UK PM Johnson announced plans to revive the UK’s economy, pledging to solve social care issues and educational inequality, while supporting local companies.
Canada Gross Domestic Product fell 11.6% MoM in April, an unprecedented slump with activity contracting in all sectors.
European stocks closed higher, wrapping up their best quarterly performance in five years. Wall Street also closed with substantial gains, with the S&P posting its best quarterly advance in over 20 years.
Gold prices soared amid the extraordinary uncertainty mentioned by US Fed’s chief Powell. Spot gold reached a multi-year high of 1,785.96.
Crude oil prices were up, with WTI flirting with $40.00 a barrel, despite the US held a record-high level of commercial crude oil inventories, according to the EIA.
Read More: Forex Today: Dollar eases within range