Markets have stabilized and the US dollar is attempting recovery after a risk-on Monday, fuelled by China’s stock market surge and lower US coronavirus concerns. A mix of figures and COVID-19 statistics are set to move the markets.
GBP/USD is trading under 1.25 ahead of a public appearance by Rishi Sunak, Chancellor of the Exchequer. He will speak with MPs ahead of unveiling new stimulus.
EUR/USD is trading just above 1.13 after reaching the highest in nearly two weeks. The focus remains on the ambitious EU recovery fund, which has yet to be approved.
USD/JPY is steady above mid-107.00s as cases in Tokyo continue climbing but the government is not considering new steps.
Gold has been able to advance despite the risk-on mood and has consolidated above $1,780. WTI drops to $40.37, down 0.70% on a day. The black gold recently eased amid fears that the coronavirus still poses serious economic challenges, which in turn could weigh on the global energy demand. API data due today and risk catalysts will be in the spotlight.
Tuesday’s economic docket features only the US JOLTS Jobs Openings, and possibly the second-tier data will fail to provide any meaningful impetus. Markets will be at the mercy of the USD price dynamics and developments surrounding the coronavirus saga.
Gold holds high as economic optimism battles coronavirus fears
Published on 2020-07-07 07:34
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