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The US Dollar index continued to make strong gains into the European session close, as the euro currency and the British pound fell to fresh multi-year trading lows.
Traders looked past the JOLTS job openings data, which totalled 11.25 million for May, which marked a sizeable drop from the upwardly revised 11.68 million in April.
According to the Labour Department’s JOLTS report. There were 5.95 million people counted as unemployed in the month, meaning there were 1.9 openings per every available worker, still around historical highs.
The US dollar currency also moved higher on better-than-expected data on the services sector. The ISM survey was relatively steady in June at 55.3 from 55.9 a month earlier.
That report from June beat the consensus estimate of 54.3. The ‘production’ survey was particularly strong, showing that near-term activity remains strong.
Traders have been looking closely at USA economic data recently, as they continue to speculate whether the FED will do a 50 or 75 basis point hike at the next meeting.
Oil was also a big mover during the US session on Wednesday. WTI crude is down $3.50 per barrel to $96.05 after falling as low as 95.50. Markets are very sensitive to energy prices.
Stock markets are likely to react positively to falling energy prices. Natural gas and oil prices rising this year have raised the odds of a financial recession coming.
The British pound currency fell to a new low of 1.1877 as the odds of Boris Johnson being ejected as the Conservative Party leader are still high. Johnson continues to fight on thought.
Earlier today, the 1922 Executive Committee of backbench Conservatives, which includes 18 members, bars a fresh challenge of Boris Johnson for 12 months after he won a 211-148 vote against him in early June.
There are certain reports appearing today they could change the rules to allow another vote. The Executive Committee said ‘the game is up’ today, and also said they will discuss changing those rules in a meeting today.
The rules do not allow another vote for 12-months after the recent challenge earlier this year. The plot thickens.
