Economic News: All Eyes on the UK Election

Economic News: All Eyes on the UK Election

The economic news for today looks quite interesting.

The yen fell to a fresh 38-year low against the US dollar and a record low against the euro on Wednesday, as the Japanese unit continued its downward spiral and market participants were keen on Japanese interventions to bolster the currency.

The dollar, meanwhile, fell after weaker-than-expected US economic data, raising expectations that the Federal Reserve is likely to cut interest rates later this year.

It declined after data showed that U.S. private payrolls rose slightly less than expected in June and initial jobless claims increased, both consistent with slowing labor market momentum. the ADP Employment report showed private payrolls increased by 150,000 jobs in June after rising 157,000 May. Economists polled by Reuters had forecast private employment increasing by 160,000.

Further pressuring the dollar was a weak U.S. services report from the Institute for Supply Management. The data showed a reading of 48.8, a four-year low, from 53.8 in May. It was the second time this year that the PMI had dropped below 50, which indicates contraction in the services sector.

The Fed’s minutes showed that most participants estimated that the current policy is restrictive but had opened the door for rate increases. Policymakers acknowledged the economy is cooling and could react to unexpected economic weakness.

Metal prices drifted higher, after softer-than-expected U.S. economic data added to hopes that the Federal Reserve could cut interest rates in September.

Crude Oil prices drop from two-month highs in Asian trade amid some profits from a strong run-up this week, while soft U.S. economic data raised some concerns over long-term demand.

But prices were still relatively buoyant after a substantially bigger-than-expected drawdown in U.S. inventories, while persistent conflict in the Middle East also kept a risk premium in play. Official inventory data showed on Wednesday that U.S. oil stockpiles fell 12.157 million barrels (mb) in the week to June 28, much more than expectations for a draw of 0.4 mb.

Outsized draws in gasoline and distillates stockpiles also showed that demand was picking up with the summer season.

MCX gold futures settled +1.19% to 72403.Silver settled +2.37% to 92021.Copper settled +1.92% to 863.30. Crude oil +0.03% at 6951. Natural gas -0.25% to 203.50.

Economic data and events scheduled today. What economic news will affect the market today?


At 11.30am – German Factory Orders m/m. Data is foreseen at 0.5% from previous -0.2%.

At 5.00pm- ECB Monetary Policy Meeting Accounts.

Above mentioned economic news and data could have a volatile impact on the Euro.


All day – Parliamentary Elections.

At 2.00pm- Construction PMI. Data is foreseen at 54.00 from previous 54.7.

Tentative – Housing Equity Withdrawal q/q. Data is foreseen at -20.3B from previous -25.1B.

Above mentioned economic news and data could have a neutral impact on the pound


ALL Day- Bank Holiday

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

Also Read: Nifty & Bank Nifty: Will They Break Out or Break Down Next?, Forex Newsletter : Dollar Index, XAUUSD, Copper, Crude Oil

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