Markets expect EU leaders to provide more stimulus

Sentiment during the EU session was not very bullish and indices fell slightly, erasing part of yesterday’s gains. 

Finance ministers from the euro area are due to meet virtually Thursday, ahead of a summit of their leaders on July 17-18. There will be discussions over the bloc’s multi-year budget as well as a proposed 750 ($851 billion) euro recovery fund for economies hit hardest by Covid-19.

Investors remain optimistic that further fiscal stimulus will be introduced in the G7 countries, mainly in Europe and the US. 

Later in the day, the US jobless claims are due, and the market expects 1,375K initial claims. In contrast, the number of continuing claims is forecast to decline slightly to 18.95 million from 19.29 million in the previous week. 

From other news, the greenback has been plunging recently, and the EURUSD pair jumped to 1.1350, while the USDJPY pair fell to 107. 

On the other hand, precious metals continue to soar, with gold trading above the 1,800 USD threshold for the first time in nearly a decade, while silver rushed toward 19 USD.