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The U.S. service sector numbers, although still in contraction, moved up towards the 50% neutral read that signals actual growth last month. The Institute of Supply Management private business survey numbers printed at 47.0, an increase on the 44.0 June number, and higher than the expected 45.9 read.
The report however was not strong enough to make a dent in global equity market selling that had engulfed global trade in June, and also now at the beginning of July.
The currency reaction was to maintain status quo around some major 4 hour chart swing point and price areas. The main beneficiary overnight has been the Usd and the Jpy, both bought in a move from stocks to bonds; with the ‘bond’ part of that move being referred to as the ‘flight to safety’, rather than the Usd or Jpy being seen as particularly ‘safe’.