The USD steadies, oil prices slip, equity markets are up, and US yields rise as investors await Iran deal and jobs report. The U.S. dollar holds steady near six-week lows as investors await further details on a proposed U.S.-Iran agreement and Friday's U.S. nonfarm payrolls report for fresh direction. Markets continue to assess the Federal Reserve's interest rate outlook, with stronger-than-expected employment data likely to reinforce expectations that policymakers could still consider a rate hike later this year. Global equity markets are mostly higher as investors look past mixed technology earnings and focus on resilient corporate results, while awaiting further developments in U.S.-Iran negotiations and Friday's U.S. nonfarm payrolls report. European equities are advancing, U.S. futures are little changed, and broader risk sentiment remains supported despite ongoing geopolitical uncertainty. Elsewhere, oil prices and bitcoin ease on optimism surrounding U.S.-Iran negotiations, while gold firms as investors seek defensive exposure ahead of Friday's U.S. nonfarm payrolls report. Today's focus will be on the US Initial Jobless Claims and Nonfarm Productivity for direction ahead of Friday's key Nonfarm Payrolls report.
News headlines. Iran says it has reached agreement withOman on Hormuz shipping route. Iceland to demand fisheries control in any EU membership deal. Drone carrying explosives found at Leipzig airport, say German police. Google DeepMind CEO Demis Hassabis steps aside in shake-up of AI lab. Progressive Democrat wins in Michigan in rebuke to party establishment. WPP shares jump more than 20% as overhaul begins to bear fruit. Gulf traffic down after Houtis say they attacked Saudi tanker. Iran threatens to hit gulf stakes if US launches new strikes. 'All strategic sectors' being discussed as new US tariff threat looms, says Carney.
In currency markets. Against the U.S. dollar, G10 currencies slip modestly in early trading as markets adopt a cautious tone ahead of Friday's U.S. nonfarm payrolls report and await further clarity on U.S.-Iran negotiations. Despite the softer start, trading remains range-bound, with labour market data expected to be the key driver for currency markets over the remainder of the week
In commodity markets. WTI -0.08% | Nat Gas -0.60% | Gold +0.61% | Silver -0.32% | Copper +1.47% | Palladium +1.23% | Coffee -0.82% | Cocoa -4.30% | Soybeans -0.09% | Wheat +0.31%
CAD holds on to Wednesday's gains in early trading, supported by stronger domestic data after Canada's trade surplus reached a four-year high and manufacturing activity expanded at its fastest pace in more than four years. Attention now turns to Friday's Canadian and US employment reports, with the labour market data expected to provide the next major catalyst for Bank of Canada and Federal Reserve policy expectations, and direction for the loonie.
EURCAD slips in early trading as softer-than-expected Eurozone retail sales weigh on the euro, while the Canadian dollar remains range-bound ahead of Friday's closely watched employment report. With Canada's labour market data and the latest read on Eurozone consumer demand still to come, investors are expected to remain sidelined for now.
EUR eases below the 1.1550 level after Eurozone retail sales unexpectedly declined in June, reinforcing signs of softer consumer demand across the bloc. Attention now turns to today's U.S. jobless claims data ahead of Friday's closely watched nonfarm payrolls report, which is expected to provide the next major catalyst for both the euro and the U.S. dollar.
GBPEUR holds steady above the 1.1650 level after today's Eurozone retail sales unexpectedly fell 0.3% in June, highlighting softer consumer demand across the bloc. Despite the weaker data, sterling remains under pressure as markets continue to scale back Bank of England rate hike expectations, leaving the cross well supported.
GBP eases toward the 1.3450 level as a modest rebound in the U.S. dollar and lingering uncertainty over U.S.-Iran negotiations weigh on sterling. Investors now turn to today's U.S. jobless claims data ahead of Friday's closely watched nonfarm payrolls report, while attention is also building ahead of next Thursday's preliminary UK second-quarter GDP release, where the economy is expected to have expanded at a modest pace following steady growth through May.
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