Forex Today: Markets attempt to shrug off grim coronavirus developments

Yohay Elam FXStreet

Here is what you need to know on Monday, June 29:

Markets are attempting to shrug off growing concerns about the spread of coronavirus, especially in the US. Robust Chinese industrial profits and hopes for a vaccine are providing some balance. Several economic figures are due out at the beginning of a busy week.

Global coronavirus cases have reached ten million and deaths passed the grim 500,000 level. Investors are concerned about the surge in the US, including a leap in Texas' positive test rate, hitting 14.3%, record highs in Arizona and Georgia, new restrictions in California, and more. Vice President Mike Pence said that wearing a mask is "just a good idea" in a shift from the White House.

China: a new cluster has been reported close to Beijing after another outbreak in the capital earlier this month. Authorities were quick to lock down the region. On the other hand, the world's second-largest economy is advancing with a vaccine candidate called Ad5-nCoV, encouraging news. Moreover, industrial profits are up 6% YoY in May, the first monthly increase since the crisis.

EUR/USD is edging up ahead of preliminary inflation figures from the eurozone for June. Consumer prices have likely remained depressed. Isabel Schnabel of the European Central Bank said that inflation could dip below 0%.

French President Emmanuel Macron suffered a defeat in local elections, somewhat weakening his position as negotiations about the EU Fund continue.

GBP/USD is attempting to move toward 1.24 ahead of Prime Minister Boris Johnson's speech on the economy this week. The government is set to present a large spending program, and that is supporting sterling.

Brexit talks resume on Monday in the new "intensive phase" after four inconclusive rounds about future EU-UK relations. Andrew Bailey, Governor of the Bank of England, will speak later in the day.

AUD/USD is still trading below 0.69 amid a resurgence in cases in Victoria state, the most populous and the one that slapped the harshest lockdown. NZD/USD is above 0.64 as Prime Minister Jacinda Ardern poured cold water on hopes of opening borders.

USD/JPY is trading around 107, as Tokyo reported 60 cases, the highest in over a month, and as the transmission could not be determined.

Gold is holding onto the high ground around 1,770. WTI Oll is retreating from its previous gains and trades around $37.

Cryptocurrencies are relatively stable after edging lower beforehand, with Bitcoin hovering around $9,100.

US Pending Home Sales for May are forecast to show a substantial rebound after falling by 21.8% in 18.9%. In politics, challenger Joe Biden is holding onto a nine-point lead over incumbent President Donald Trump. Markets are currently focused on other topics but may tune in.

Our latest:

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.