U.S – China Trade Deal “Over”! The News Hits the Wires as the Markets Prepare for June’s PMIs.

Earlier in the day:
It was a busier start to the day on Tuesday's economic calendar. The Australian dollar and Japanese yen were in use early, with a focus on preliminary private sector PMIs in June.
Outside of the numbers, the latest COVID-19 news caught the eye early in the day and supported riskier assets.
This time it was the United States' anger over China's apparent delay in ringing the alarm bells that weighed on risk sentiment. Reports from US trade adviser Navarro hit the news earlier this morning saying the trade deal with China was "over".
Check out the latest coronavirus numbers
On Monday, the number of new coronavirus cases increased by 126,214 to 9,170,758. On Sunday, the number of new cases increased by 131,020. The daily increase was less than the increase on Sunday, compared to 115,910 new cases last Monday.
Germany, Italy and Spain reported 952 new cases on Monday, compared to 917 new cases on Sunday. Only 855 new cases were reported last Monday.
From the United States, the total number of cases increased on Monday by 29,864 to 2,386,521. On Sunday, the total number of cases increased by 26,079. A total of 19,412 new cases were reported on Monday June 15.
From Australia
Commbank Manufacturing's PMI rose from 44 to 49.8 in June, according to preliminary figures. Economists had forecast an increase to 49.3. However, the activities of the service sector impressed with a return to expansion. The PMI for services rose from 26.9 to 53.2. Economists had forecast an increase to 27.7.
The Australian dollar moved from $ 0.69232 to $ 0.69209 after the figures were released. At the time of writing, the Aussie fell 0.52% to $ 0.6872. A reversal of US news about the US-China trade agreement ...
For the Japanese yen
The PMI for manufacturing fell from 38.4 to 37.8, while the PMI for services rose from 26.5 to 42.3. Economists had predicted PMIs of 47.5 and 40.6, respectively.
According to the preliminary June survey
Manufacturing output declined faster and most sharply since March 2009. Employment across the industry also declined faster in June.
New business in the services sector declined much more slowly in June and employment stabilized.
The support for the service sector resulted from the lifting of the state of emergency.
The Japanese yen moved from 106.931 yen to 106.928 yen against the dollar after the figures were released. At the time of writing, the Japanese yen was up 0.13% against the US dollar to 106.77 yen.
Elsewhere
At the time of writing, the kiwi dollar had fallen 0.48% to $ 0.6449, with US chatter weighing.
The day before us:
For the EUR
A busy day is ahead in the economic calendar. Preliminary private sector PMIs in June are due from France, Germany and the euro area.
We can expect a lot of influence from the numbers, although the service PMI should attract more interest.
The ECB had targeted a recovery in the service sector prior to the COVID 19 pandemic. This dependency could now be even greater as unemployment declines across the euro block.
At the time of writing, the EUR was down 0.20% to USD 1.1239. Negative chatter from the US government brought the EUR into the red early on.
For the pound
It's a relatively busy day in the economic calendar. Preliminary private sector PMIs in June will be released today.
Expect the market focus to be on the service PMI, which needs to be improved significantly. It could be a bit tricky for the pound if weak numbers are accompanied by negative Brexit updates ...
At the time of writing, the pound was down 0.18% to $ 1.2446 with risk aversion weighing.
Across the pond
A busy day is ahead of the US economic calendar. Key statistics include new home sales in May. And preliminary private sector PMIs in June.
Again, we would expect the PMI for services to have the biggest impact on the day. Don't expect too much from the new PMI for home sales and manufacturing, aside from particularly bad numbers.
For markets, an upward trend from historic lows in April across the private sector should continue. Weak numbers and expected risk aversion will affect global financial markets.
Aside from the numbers, geopolitics and COVID-19 news from the United States remain key drivers.
Navarro's announcement on Monday led to early dollar demand.
At the time of writing, the Dollar Spot Index rose 0.14% to 97.178.
For the loonie
It is another particularly quiet day in the economic calendar. There are no material statistics outside of Canada that could give instructions to the loonie.
A lack of statistics will leave the loonie in the hands of market risk sentiment, COVID-19 news and updates, and PMI numbers.
Disappointing PMI figures from the Eurozone or the United States would likely test sentiment regarding the economic outlook. The markets hope for a V-shaped economic recovery. Today's PMIs could give an idea of ​​what's ahead.
An end to a US-China trade agreement, however, would overshadow all positive PMIs.
At the time of writing, the loonie was down 0.24% against the US dollar to $ 1.3555.
In our economic calendar you will find all of today's economic events.
This article was originally published on FX Empire
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