ECB’s dovish bias hasn’t gone down well with the German Bund traders. The 10-year yield has re-entered falling sideways channel and is likely to extend the drop to 5-week MA of 0.48%.
The seasonally adjusted IHS Markit U.S. Services Business Activity Index registered 54.2 in June up from 53.6 in May.
A bigger trade deficit could become the reason for a technical correction in the USD/CAD pair. Trade deficit widened to 1.09B, beating the estimated figure of 0.5B
The Commerce Department says the U.S. deficit in the trade of goods and services fell 2.3 percent in May to a seasonally adjusted $46.5 billion. Exports ($192.03 billion) rose to highest since April 2015…
Imports fell 0.1% while exports rose 0.4%.
The deficit in the trade of goods with China fell by 6.2 percent to a seasonally adjusted $30.1 billion.
bias could be removed if inflation outlook improved
guidance to be adjusted very gradually