USD

The US Dollar is down this morning as traders analyze an array of data from the US and across the globe.

As the US session kicks off, the Greenback is clinging to slight gains on the week but is on pace to finish the month in the red.

The headline PCE price index increased by 0.1% monthly and 3.8% yearly, the smallest annual increase since April 2021. Core PCE rose by 0.3% in May, in line with expectations, while the year-on-year figure decreased to 4.6% from 4.7% in April.

Meanwhile, US personal spending increased by 0.1% thanks to higher spending on services, but a decline in spending on goods such as vehicles and gasoline offset this. Despite the increase, the figure came in below market expectations of a 0.2% rise.

Later this morning, the latest Michigan Consumer Sentiment Index is set for release, with markets anticipating the index coming in at 63.9 in June, which would match the May figure.

EUR

The euro finds itself higher on the day after the release of multiple key data points in Europe and the US, putting EUR/USD on pace for a solid finish for June.

On the inflation front, eurozone consumer price inflation decreased to 5.5% in June, slightly below market expectations. France, in particular, saw inflation slow to 4.5%, reaching the lowest level since March 2022.

Meanwhile, the eurozone unemployment rate remained at a record low of 6.5% in May, signaling a tight labor market. Germany had the lowest jobless rate at 2.9% among the largest eurozone economies, while Spain, Italy, and France recorded the highest unemployment.

Finally, German retail sales experienced a 0.4% increase in May, although sales were 3.6% lower from a year-on-year perspective.

GBP

The Pound is up over 0.5% today but still has work to do if it hopes to avoid its second consecutive losing week.

Earlier this morning, the UK's annualized GDP growth for Q1 came in at 0.2%, the slowest in two years, affected by high inflation and increased borrowing costs. Household consumption and capital investment had modest growth, while government spending declined. On the bright side, exports grew, and imports decreased, contributing to net external demand.

In addition, the UK's Nationwide House Price Index showed a slight 3.5% year-on-year decline in June, with most regions experiencing a drop in annual prices, but monthly prices increased by 0.1%.

JPY

The Yen is inching higher this morning but is still set to finish deep in the red for the third consecutive month as traders digest a fresh slate of data out of Japan.

Tokyo's core consumer price index rose 3.2% year-on-year in June, remaining unchanged from the previous read but falling short of expectations. Despite this, Tokyo's core inflation rate remains above the Bank of Japan's (BoJ) 2% target for the 13th consecutive month.

Meanwhile, Japan's unemployment rate held steady at 2.6% in May. The labor force participation rate increased slightly, but the jobs-to-applications ratio reached its lowest since July 2022.

In addition, Japan's industrial production declined by 1.6% in May, the first drop since January, due to lower output in sectors like motor vehicles and electronics, but still posted annual growth of 4.7%, the highest in seven months.

CAD

The Loonie is down against the Greenback today and on the way to its first losing week since May following the release of US PCE data and the latest Canadian GDP print. However, the Loonie remains on track for its first winning month since March.

The revised GDP growth for April in Canada was 0%, lower than the anticipated 0.2% increase, with service-producing industries remaining unchanged and goods-producing industries experiencing a slight 0.1% increase. On the bright side, Canada is projected to have experienced a 0.4% growth in May, primarily led by the manufacturing, wholesale, and real estate sectors.

MXN

The Mexican peso is well on its way to another monthly gain against the US dollar, up over 0.3% today after the double-dose of data from the United States and Mexico.

Mexico's unemployment rate rose slightly to 2.9% in May, exceeding market expectations, while the number of unemployed individuals decreased and employment increased. The participation rate was 60.2%, and the seasonally adjusted jobless rate reached 3%.

Later today, Mexico's government will release its fiscal balance for May, which is expected to show a deficit of MXN 46.0 billion after posting an MXN 39.3 billion deficit in April.

BRL

The Brazilian real is off to a strong start this morning and well on its way to posting solid gains of over 4% against the US dollar for June.

Earlier today, Brazil's unemployment rate in the three months leading up to May matched market expectations at 8.3%, a slight decrease from the previous period and near an eight-year low. The number of unemployed individuals declined, the employed population remained steady, and actual earnings remained relatively stable.

Meanwhile, Brazil's budget deficit for May reached its highest level since August 2020 and surpassed market expectations, with both central and regional governments contributing to the larger deficits.

CNY

The yuan is flat on the day as traders mull over new PMI numbers out of China and this morning's US inflation release.

In June, the NBS Composite PMI Output Index in China dropped to 52.3, reaching its lowest level since December 2022, primarily driven by a third straight month of contraction in the manufacturing sector. The decline was attributed to weak demand both domestically and internationally, along with ongoing weaknesses in the Chinese property market. Additionally, the service sector experienced its slowest expansion in six months.

Within the manufacturing sector, there were declines in new orders, buying activity, and export sales, while employment saw a fourth consecutive month of contraction. Similarly, the slower growth in the services sector was influenced by persistently weak new orders, declining foreign sales, and a faster rate of employment contraction.