Forex Today: Dollar demand on hold amid a US holiday
|What you need to know on Tuesday, July 6:
The week started in slow motion amid a holiday in the US that kept local markets closed. The greenback held around Friday’s lows against most major rivals, but near multi-month highs. Further declines seem unclear.
UK Prime Minister Boris Johnson announced all restrictive measures would be lifted on July 19, including the use of masks and social distancing rules. He also noted that people will no longer be instructed to work from home, despite surging coronavirus cases. A final decision will be made on July 12. The country reported an increase in hospitalizations in the last 48 hours, although the levels are still far below the peaks from last year.
Markit final versions of its Services PMIs for the EU indicated substantial growth in June. US data will be out on Tuesday.
Crude oil prices soared as the OPEC+ meeting was postponed once again. Pretty much that confirms that members are unable to agree on an increase in oil output. WTI trades at $76.30 a barrel.
Gold futures were up, with the bright metal currently at $1,791 a troy ounce.
Wall Street futures edged lower, although there were no fireworks in stocks markets.
Concerns about the Delta variant spreading in Europe and the US had a limited impact on currencies. However, the pandemic continues to take its toll on economic progress worldwide. A new strain coming from California, now named Epsilon, seems to be resilient to vaccines and may become a risk-off catalyst.
The focus now shifts to the Reserve Bank of Australia monetary policy decision and Governor Philip Lowe press conference.
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