Daily Market Commentary 2nd July 2021

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US equity markets continue to post gains, up around record highs, ahead of the all important No Farm Payroll number released tonight. The Challenger Jobs Reports showed less job cuts than expected and the Weekly Jobless Claims was the lowest since the pandemic began. This all points to strong employment data tonight, but any negative surprise, could result in a serious adjustment in market confidence.

While employment data is the focus, PMI Manufacturing data was softer in Asia and the USA, although European numbers reflected slight gains. The EUR held 1.1840, despite a stronger Dollar, while the GBP fell back to 1.3750 after dovish commentary from the Bank of England Chair Bailey. The stronger reserve did not spare the commodity currencies, with the AUD falling to 0.7460, while the NZD drifted to 0.6960.

Markets remain in flux, awaiting the all important Non Farm Payrolls and all the minor data releases remain just noise.

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