Market Report : 05.07.23

Published: 05/07/2023 By ECAP

Sterling extended yesterday’s late pullback from a multi-day peak as economists fear that the British economy might be heading for a recession. This contributes to keeping a lid on sterling gains as market participants now look to the final UK Manufacturing PMI for some impetus.

The Euro remained largely flat against its peers ahead of the release of the June services and composite PMI data for the euro zone. The data is expected to confirm a slowing in what has been a consumption-led economic recovery which could weigh on the bloc’s single currency.

The US dollar edged higher in early European hours this morning as weak Chinese activity data hit risk sentiment. That said, dollar gains have been limited as US traders return from their Independence Day holiday and focus on the release of the minutes from the June meeting of the Federal Reserve.