Stocks pull back as dollar advances ahead of Fed minutes release - 7.7.2021

The Dollar strengthening is intact currently . The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.3% Tuesday as the Institute for Supply Management (ISM) services PMI declined to 60.1 in June from 63.4 in May when an increase to 64 was expected.

GBP/USD joined EUR/USD’s accelerated sliding yesterday despite Eurostat report euro-zone retail sales rose more than expected in May after a pullback in April. Both pairs are lower currently. AUD/USD joined USD/JPY’s continued sliding yesterday with the dynamics reversed for both pairs currently.

Futures on three main US stock indexes are down currently ahead of Fed’s June meeting minutes release at 20:00 CET today. Stock indexes in US ended mixed Tuesday with Nasdaq ending at record high as ISM data showed the US services sector is still growing strongly but had slowed more than expected in June amid supply issues: the three main US stock indexes posted returns ranging from -0.60% to +0.17%.

European stock indexes are edging lower currently after a down session on Tuesday with basic resources shares leading losses as German industrial orders unexpectedly slumped in May, dropping 3.7% over month to mark their sharpest decline since the first covid lockdown of 2020. Asian indexes are mixed today with Nikkei leading losses.