- USD on the rise as ISM beats forecasts
- GBP also gaining on strong services print
- Apple shares make new record high
- Crypto markets mixed as Apple co-founder remains optimistic
- How will USDCAD react to NAFTA and OPEC events?
The US dollar was on course for a solid day of gains before the latest US data and a better than expected ISM release has boosted demand for the buck further. For the non-manufacturing print a reading of 58.6 marks a decent gain on the prior of 56.8 and is solidly above the 57.6 expected. Looking at the ISM components the report is pleasing on many levels for USD bulls with prices paid (64.3 vs 61.8 prior), new orders (60.5 vs 60.0 prior) and employment (54.1 vs 53.6 prior) all moving higher.
British services PMI quite easily beat expectations in May producing a rise to 54 from 52.8 points a month earlier while just a tiny bounce to 53 had been projected. The larger improvement acted in favour of market participants’ anticipations with regard to rate hikes later this year boosting the pound at the same time. However, the pound seems to be just embarking on its increase having abundant scope ahead.
US stock markets began the cash session little changed and have seen some notable selling into the end of the European session. Apple has reached another record high and the move into uncharted territory has rekindled talk of Apple being the world’s first $1T company, with price needing to gain just over $10 a share to reach the landmark figure.
Steve Wozniak, one of the Apple founders, expressed some upbeat remarks towards the world’s most popular coin, Bitcoin. Wozniak responded to the comment made by Jack Dorsey, CEO of Twitter, earlier this year. Dorsey said he believes that Bitcoin will become Internet’s native currency. Apple founder responded that he buys into what Dorsey said but he does not necessarily believes it is going to happen. Bitcoin is higher by around 0.6% at the end of the European session.
USDCAD hit its highest level in almost 3 months today with the market breaking above the 1.30 handle. Price has since pulled back and fallen below the psychological level however and the outlook going forward could well depend on 2 key upcoming events; NAFTA negotiations and OPEC. We preview this in-depth here.
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