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Daily Market Review – 1/07/16

China Manufacturing PMI data produced another startling decline via the Caixin reading early on Friday.  With an outcome of 48.6 compared to the already weak estimate of 49.1 it has to be said that the Chinese economy continues to produce results that are bad. The JPY The official currency of Japan is the JPY The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen to investors and t... More to investors and t... More to investors and t... More which is also knows as the Japanese Yen to investors and t... More has gotten stronger in trading this morning as Asian traders have perhaps sought safer assets Can be stocks, commodities, indexes or Forex currency pairs. More going into the weekend. It should be noted that core products costs in Japan have also shown that they continue to be deflationary.

While most investors are focused still on the outcome of the Brexit vote from the U.K. as the biggest risk event, traders should also be aware that economic activity from China and Japan remains challenging. On the other hand, it needs to be said that the Nikkei and most other Asian equity Indices are finishing the week with gains.

The U.K. will release its Manufacturing PMI today. The political scenarios for the U.K. are becoming clearer as the two main parties seem to be setting themselves up for the future via a Brexit. Negotiations for the formal treaties will take a considerable amount of time, but it appears investors are beginning to come to terms with the new reality of a U.K. outside of Europe. The GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More has traded slightly lower this morning, but Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More has not been volatile.

BoE Governor Mark Carney has reiterated that the Central Bank is ready to act if needed and hinted at a potential interest rate cut yesterday within the next few months, but an interest rate cut would likely face many questions and criticism from a variety of analysts who would disagree with this policy. The BoE may find itself within a political fight as new Conservative and Labour leaders enter the fray.

From Europe today plenty of Manufacturing PMI data will be published including Germany and France. The EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More has also found some pressure, but like the GBP the Single Currency The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More finds itself testing short-term ranges in a stable mode. Indices from Europe has done well the past few sessions and early calls are positive.

The U.S. will also see a manufacturing report later today, but traders need to know that volumes from the States will be light today because many investors from America are likely starting their long holiday weekend early. Wall Street like its counterparts has recovered well from the hysteria that hit the broad markets last Friday and this past Monday.  Commodity prices have also found range bound movements. Crude Oil prices have essentially been testing known support When investors and traders use the term support When investors and traders use the term support When investors and traders use the term support, or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More and resistance When investors and traders use the term resistance When investors and traders use the term resistance When investors and traders use the term resistance, or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More , or resistance level, they are often speaking abo... More levels and going into the weekend could offer traders an opportunity to test short-term ranges.

GBP/USD chart this morning approximately 6:45 GMT, 1 July 2016

GBP/ USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More chart this morning approximately 6:45 GMT, 1 July 2016