Low Market Activity During Independence Day
04 July 2022
As the US is celebrating its most important holiday, markets have been calm today, not showing any significant moves during the London session.
The USD has remained flat, with the EURUSD pair hovering near 1.0430 and USDJPY above 135 as bond markets remain closed, not influencing the greenback today.
US equity indices declined slightly but remained above Friday's lows. EU bourses also slipped, but so far, nothing dramatic.
In a report, analysts at Nomura predicted that during the next 12 months, the Eurozone, the United Kingdom, Japan, South Korea, Australia, and Canada would all experience recessions because central banks will likely steer clear of tightening policy even if doing so will harm GDP.
Earlier today, data showed that the German trade surplus had disappeared. May's foreign trade balance was MINUS 1 billion EUR, the first negative reading since 1991 as a result of the country's energy issues and manufacturing downturn.
However, due to Monday's Independence Day holiday in the United States, volatility and liquidity in the markets will probably be restricted.