Morning Juice – US Session Prep (10th July)

Sentiment
The yuan advanced after China’s central bank signaled its comfort with the currency’s strength by setting the daily reference rate below 6.80 per dollar for the first time since 2023.
Carry trades – one of the most widely-used strategies in the $9.5 trillion-per-day currency market – are seeing the most compelling backdrop in more than two decades, according to Goldman Sachs. New Zealand’s dollar advanced to its strongest level in three weeks after a hawkish central bank and strong manufacturing data this week fueled trader bets for two more interest-rate hikes this year. Japan’s finance minister called for the nation’s massive pension funds to increase investments in domestic assets, boosting the yen from near four-decade lows and spurring a rally in bonds. Talks between the US and Iran over a permanent peace deal are continuing, according to a American official, despite two days of clashes that threatened to shatter an already fragile ceasefire.

Docket
08:30 ET
Canadian Employment Data for June
Employment Change – Forecast: 10k | Prior: 87.8k | Range: 35k / 0
Unemployment Rate – 6.6% | Prior: 6.6% \ Range: 6.9% / 6.5%

Good luck, and have a good weekend!