The FX market had slow start on Wednesday as US traders take a day off for Independence Day. The Dollar Index eased to 94.50, down 0.10% on the session, as the euro edged up 0.05%, the yen 0.15% and the Swissie 0.15%. However, most currency pairs have been range-bound as trade tensions stabilise. Indeed, the lack of fresh news regarding the trade conflict between the US and its largest trading partners has allowed the risk sentiment to pick-up somewhat. Nevertheless, investors remain on the defensive, which explains the lack of clear trend in financial markets.
On the economic calendar, it will be a busy day in Europe as PMI figures are due for several countries. However, there is little change it will impact significantly the market, especially as trading will be thinner than usual today. Things will be back to normal tomorrow with ADPs, US PMIs and crude inventories.
By Arnaud Masset
