US dollar
The market mood is mixed after a late rally in Wall Street allowed the dollar to recover despite a record number of coronavirus cases in the US and the Federal Reserve’s warning to lenders. A speech by the ECB’s Lagarde, several US figures, and COVID-19 statistics are eyed today.
President Donald Trump insisted that the US economy will roar forward and not shut down. He is facing an uphill re-election campaign, trailing in the polls against rival Joe Biden in all swing states.
The Federal Reserve has banned the largest banks from share buybacks in the third quarter and paying dividends in for the second one. The move is meant to keep resilient amid high economic uncertainty. The announcement somewhat weighed on sentiment.
EUR/USD is trading above 1.12 ahead of a speech by Christine Lagarde, President of the European Central Bank. She may discuss the current economic situation and the dealings with the German constitutional court. GBP/USD trades near 1.2415, at the lower end of the intraday range between 1.2415 and 1.2430. USD/JPY reverts to a familiar range around 107.10, as the S&P 500 futures flipped to losses.
Gold prices are off their highs around $1,760 amid the more stable mood but could rise if investors are fearful again ahead of the weekend. Oil prices are on the rise once again and helped the Canadian dollar stabilize.
In the absence of any important macro releases from the Eurozone, ECB’s President Lagarde speech will be closely eyed. Later during the early North American session, investors might take cues from the US economic docket – featuring the release of Core PCE Price Index, Personal Income/Spending data and the final version of the June Michigan Consumer Sentiment Index.