US equities are up at the time of writing but the Dollar is weaker across the board after a nevertheless good week for the US currency. Markets were seemingly unimpressed by a weaker than expected Philadelphia Fed manufacturing index in June. While all the signs point towards faster US GDP growth in Q2 the question of whether the Fed will hike rates twice more this year is nowhere closer to being answered.
EURUSD has rallied to close to 1.17 but remains choppy following decent preliminary eurozone PMI data for June. While manufacturing activity slowed further growth in services picked up, suggesting that Eurozone GDP growth may not have slowed as much initially feared in Q2.
GBP/USD broke through 1.33 in the wake of yesterday’s hawkish surprise at the MPC meeting and strong government budget data. But with so much uncertainty in coming months, particularly regarding Brexit, Sterling may still ultimately struggle for direction against other major curencies.
