Here’s what you need to know on Wednesday, June 3:
Large protests continue in the United States, albeit of a calmer nature. The markets are focused on stimulus measures, equities extending progressive gains and the safe haven falling. A busy day awaits traders with two non-farm payroll indices, the BOC decision and additional data.
American protests: Several American cities have seen demonstrations against racial discrimination. The governors refused to seek help from the military, but troops have reportedly accumulated outside Washington D.C. President Donald Trump appears to have mitigated his threats to impose martial law.
Looting has decreased, but protesters have violated curfew orders in some cases. The lack of social distancing raises concerns about the second wave of coronaviruses. COVID-19 statistics continue to come down gradually in the United States. Actions see events, focus on reopening, support from the Federal Reserve and possibly additional budget support.
The US economic calendar is busy, including two indices on Friday’s non-farm wages. ADP Private Sector Employment Report is expected to result in the loss of several million jobs and the ISM non-manufacturing purchasing managers index for May is expected to increase slightly, while indicating a contraction.
Brexit: Hopefully the two parties will concede have not materialized and the impasse continues. The EU now hopes for an intervention by British Prime Minister Boris Johnson. Brussels is open to a two-year extension of the transition period, but London rejects this option. Markit’s final PMI for May is expected to confirm the score of 27.8 originally announced.
GermanyChancellor Angela Merkel has failed to agree on the details of the fiscal stimulus with her coalition partners, and talks are continuing. Europe’s largest economy is expected to post a sharp increase in unemployment in April.
EUR / USD exceeded 1.12 amid the weak dollar and before the European Central Bank’s decision on Thursday. Investors expect the ECB to expand its quantitative easing program (overview). The final service PMIs are likely to confirm the weakness.
Australia said economy contracted 0.3% in the first quarter, on its way to the first recession since the early 1990s. Nevertheless, the gross domestic product figures exceeded expectations and supported AUD / USD which has reached 0.69.
Oil prices progressed, driven by the hope that Saudi Arabia and Russia will continue to cooperate to keep production at lower levels. WTI hovers around $ 38.
the Bank of Canada announces its rate decision on Wednesday, the first under Tiff Macklem, the new governor. Economists expect the BOC to leave rates unchanged. The tone of the attached statement is likely to set the tone for the Canadian dollar. The USD / CAD is fighting at 1.35 amid the decline in the greenback and rising gas prices.
See: BOC Preview: Will Tiff Macklem be hard? Three Ways the New Governor Can Move USD / CAD
Cryptocurrencies are trying to find their feet after a quick sale on Tuesday that saw all the digital pieces collapse at the same time.
Gold fell from peaks near $ 1,750, but remains well above $ 1,700.