Forex Today: Dollar dominates ahead of EU Summit, updated look at the US consumer amid rising cases
|Here is what you need to know on Friday, July 17:
The US dollar has been consolidating its gains following a retreat of US stocks amid mixed US data, rising coronavirus cases, and as the ECB left rates unchanged. The crucial EU Summit and US consumer sentiment figures are eyed as the week draws to an end.
US retail sales beat expectations with an increase of 7.5% monthly in June and 1.1% yearly, completing a V-shaped bounce. However, the resurgence of coronavirus has kept jobless claims elevated at 1.3 million in the week ending July 10.
See US Data Analysis: Reopening is a double-edged sword, S&P 500 bulls have reasons to worry
US COVID-19 cases hit a new daily high of 75,000 while deaths continue rising, nearing 1,000 daily. Texas, California, and Florida have been experiencing a high number of infections.
An updated look at the state of the US shopper comes from the University of Michigan's preliminary Consumer Sentiment Index for July. A minor increase is projected.
See US Consumer Sentiment Preview: Finally an update on coronavirus resurgence damage, S&P 500 on alert
EU leaders will hold their first face-to-face summit since coronavirus took over and they will try to agree on a recovery fund. The large countries support the EU Commission's plan which included controversial mutually funded grants worth €500 billion. The Netherlands leads a group dubbed the "Frugal Four" which objects the move.
The European Central Bank left its policy unchanged as expected and urged governments to act. The ECB reiterated its commitment to help the economies and marches forward with its €1.35 trillion Pandemic Emergency Purchase Program (PEPP).
Tensions between the West and China remain prevalent after the UK decided to phase out the usage of Hauwei's equipment and as the US ponders sanctions on Chinese officials following Beijing's tightening of its grip on Hong Kong.
AUD/USD is trading below 0.70 amid dollar strength, a jump in cases in Victoria state and despite upbeat Australian job figures.
USD/JPY is trading above 107 as infections in Tokyo continue rising. The yen does not seem to benefit from substantial safe-haven flows.
Gold is consolidating its losses under $1,800 while the WTI Crude Oil price is steady above $40.
Cryptocurrencies are stable with Bitcoin holding above $9,100.
More Central banks make way for governments to act and move markets, but there is only one real boss
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