Here is what you need to know on Monday, July 6:
A holiday in the US kept majors lifeless on Friday, exacerbating the previous range trading. The greenback finished the week with a soft tone, weighed by concerns about the future of the economy as coronavirus cases continue to rise, particularly in the Southern states. The dollar maintained its week tone across the board.
Coronavirus expansion remains as the primary market concern. The US has reported over 57,000 new cases in just one day by the end of the week, with the epicentre in the Southern States. The number of new contagions eased during the weekend, but the country is still reporting over 45,000 new cases per day. The total number of new contagions worldwide on Saturday reached roughly 189,600, while there are over 4.4 million active cases reported globally. Progress in vaccines continues to be to slow for the market to shift its focus to economic recoveries.
On Saturday, ECB President Christine Lagarde said that the EU would likely face two years of downward pressure on prices, amid a transformation of the economy as a result of the coronavirus pandemic. Lagarde said that the economy is facing a transition period to new economic models, with greater digitization and automation, affecting employment and production. In the meantime, the central bank will need to keep its monetary policy exceptionally loose.
After Brexit talks ended earlier than anticipated on Thursday amid serious divergences between both parts, the EU and the UK committed to another round of talks this week in London. There are three main issues that remain unsolved: EU access to UK fishing waters, the EU’s demand for a “level playing field,” and the position of the European Court of Justice to resolve disputes.
Last Friday, Asian equities posted modest gains, but European indexes closed in the red, reflecting the cautious mood. The dismal market’s sentiment will likely continue at the beginning of the new week.
Gold prices hit a fresh 8-year high last week, ending it pretty much unchanged at 1,774.60. Central bank’s pledge to keep stimulating the economy and concerns related to the coronavirus pandemic will likely continue to support the bright metal.
Crude oil prices finished the week with gains, although within familiar levels. WTI continues to hover around $40.00 a barrel.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bears return starting out a fresh week
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY advances toward 149.50 ahead of crucial BoJ policy decision
USD/JPY is rising toward 149.50 in the Asian session on Tuesday, picking up fresh bids. Traders keenly await the highly-anticipated Bank of Japan policy decision. The BoJ's outlook on the negative interest rate policy and the Yield Curve Control (YCC) will play a key role in influencing the Japanese Yen.
AUD/USD creeps lower to test 0.6550 ahead of RBA’s decision
AUD/USD is grinding lower to test the 0.6550 level in Asian trading on Tuesday. The Aussie Dollar stays on the defensive against the US Dollar as markets prepare for the Reserve Bank of Australia's extended pause but the Bank's rate outlook will hold the key.
Gold stays afloat despite high US yields as traders focus on Fed policy
Gold sees a modest increase, as investors watch this week's central bank meetings. Focus remains on the Federal Reserve, where a hawkish stance could potentially impact XAU/USD price while bolstering the US Dollar.
Avalanche price could rise 20% on gaming narrative ahead of GDC conference
Avalanche is an outlier on Monday, rallying while the broader market is crashing. It has outperformed Bitcoin price, as well as meme and AI crypto coins, sectors that have been thriving of late.
Australia Interest Rate Decision Preview: RBA set to stand pat after discussing rate hikes in February
The Reserve Bank of Australia is widely expected to hold the Official Cash Rate steady at a 12-year high of 4.35% following the conclusion of its March monetary policy meeting on Tuesday. The decision will be announced at 03:30 GMT.