Forex Today: Coronavirus concerns trigger dollar domination, commodity currencies climb down


Here is what you need to know on Monday, June 15: 

Markets kick off the week on the back foot as coronavirus cases rise in the US Sun Belt, Beijing, and Tokyo. The dollar and the yen are up, while others, especially commodity currencies, are down. A high-level call on Brexit, several data points, and further COVID-19 figures are of interest. 

Coronavirus spreading: Cases and hospitalizations continue increasing in California, Texas, Arizona, and around 20 other US states, causing fears of a slower economic recovery. 

Senior White House Adviser Larry Kudlow continues seeing a V-shaped recovery, cheering the economy. On the other hand, he rejected calls to extend the special unemployment payments, which expire at the end of July. That may slow the bounce. 

US racial tensions remain high after a policeman fatally shot a black man in Atlanta. Protests continue in the US, and the topic is high on the agenda ahead of the elections. 

The Empire State Manufacturing Index and a speech by Robert Kaplan, President of the Dallas branch of the Federal Reserve are on the agenda.

China: A COVID-19 outbreak has been reported in Beijing, and the Chinese capital closed down several sections and markets. Industrial output rose by 4.4% and retail sales fell by 2.8%, both showing the world's second-largest economy is recovering but missing expectations. 

Japan: Cases in Tokyo have jumped by 47, the most since early May. The Japanese yen continues benefiting from its safe-haven status. 

Europe continues reopening: France and Spain are both relaxing measures and attempting a return to normal. EUR/USD is weathering Monday's dollar strength and holding around 1.1250. The trade balance is due out later.

The UK is opening non-essential shops on Monday as it gradually loosens restrictions. GBP/USD suffered a significant downfall on Friday and has been extending its losses below 1.25. 

Brexit: UK Prime Minister Boris Johnson and several leading European officials will hold a video call to discuss deadlocked Brexit talks. Britain told Brussels it will not ask to extend the transition period that expires year-end, yet several lawmakers in London are urging the government to reconsider.

Gold has been edging lower but holding above $1,720. The precious metal benefited from the Federal Reserve's pessimism and ongoing support.

Oil prices continue their decline, with WTI dropping below the $35. The risk-off mood is the primary driver.

Cryptocurrencies have been declining, with Bitcoin holding around $9,100.

More Hong Kong Dollar Peg: How vulnerable is it and if it breaks, how will it happen? Explained

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