Investing Live: Americas FX News Wrap - AI Momentum Drives Markets

US June factory orders decreased by 0.3%, falling short of the expected 0.2% increase. JOLTs job openings also declined, coming in at 7.359 million against an estimate of 7.400 million, indicating a slowdown from the previous month.

Senator Marco Rubio noted progress on the potential reopening of the Strait of Hormuz, although no final agreement has been reached yet. Meanwhile, Canadian manufacturing PMI hit a four-year high, reflecting robust sector performance.

The US International Trade balance for June showed a deficit of $73.3 billion, slightly worse than the anticipated $73.0 billion. Federal Reserve official Paulson remarked that underlying inflation remains elevated, suggesting ongoing concerns about price stability.

In market movements, gold prices rose by $27 to $4,080, while US 10-year Treasury yields fell by 5.7 basis points to 4.63%. WTI crude oil dropped $4.61 to $75.73, influenced by various reports regarding the Strait of Hormuz.

The S&P 500 and Nasdaq Composite surged by 2.0% and 2.8%, respectively, driven largely by gains in AI chipmakers. Analysts noted that the recent earnings from major tech firms have instilled confidence in the market, with expectations of positive returns on AI capital expenditures.

Despite concerns regarding the K-shaped recovery highlighted by McDonald’s earnings, the market remains buoyant, particularly in the tech sector. AMD shares rose by 8% ahead of its earnings report, reflecting strong investor sentiment.

In foreign exchange, uncertainty surrounds potential US intervention in USD/JPY, yet dip buying persisted. The oil market remains cautious amid ongoing discussions about a deal regarding the Strait of Hormuz, with skepticism about the feasibility of reaching an agreement.