- European stocks snap two-day rally
- Mixed PMI readings from US
- Bitcoin rebounds
During today's session, a number of PMI indicators from several countries were released. While the data from France was slightly worse, the readings for Germany turned out to be better than expected, thanks to which the euro gained today against the USD in the first half of the day. In turn, the afternoon US PMI readings were mixed, the service sector data disappointed, while the manufacturing reading turned out to be slightly better than expected.
As for the stock market, European indices launched the session lower and negative moods continued in the second half of the day. The vast majority of major stock indices from the Old Continent finished the session in red. The German DAX lost more than 1% and the CAC40 fell 0.9%. When looking at the US market, mixed sentiment prevails. The S&P 500 gained 0.1% for a third straight positive day, sitting near its all-time high. The Dow Jones Industrial Average is trading slightly below the flatline. The Nasdaq Composite climbed 0.4% to an intraday record after closing at a fresh high in the previous session.
The beginning of today's session on the Forex market brought a weakening of the dollar, but the American currency started to regain strength in the afternoon. At the end of the day, the US currency fell around 0.35% against AUD and NZD. GBPUSD pair rose 0.2%, it is worth noting that tomorrow Bank of England will present its decision regarding interest rates, which may cause increased volatility on pairs with the British pound. At the end of the day the EURUSD is trading near the flatline, while the Swiss Franc is losing 0.1% to the USD and the Japanese yen fell 0.3%.
A lot has happened on the cryptocurrency market. Bitcoin price may have printed a meaningful low yesterday as the flagship cryptocurrency briefly swept the May lows before reversing higher. Today the upward movement continued and Bitcoin gained 3.5%, while Ripple surged over 13% and Ethereum gained 5%.
Looking at the main currency pair - EURUSD, from a technical point of view, today the upward move continued. However, the pair reached the resistance zone around 1.1960 - 1.2000, where sellers reappeared. If buyers fail to break above this zone, a continuation of the downward movement should be expected. The zone around 1.1850 remains the key support. Source: xStation5
