Here is what you need to know on Thursday, July 9th:
Markets were mixed, with stocks making a come back from a beaten-down day on Wednesday as investors keep the faith in the vaccine race and the ability for economies to struggle through the coronavirus malaise.
US cases of COVID-19 surpassed 3 million overnight while a Reuters tally estimates that global coronavirus cases rise to more than 12 million.
US Fauci said Phase 3 vaccine trials may begin at end July, and that he is cautiously optimistic for a vaccine by year-end.
We hade a flurry of Fed speakers s well, with Fed’s Bostic reiterating that the infections spikes are clouding the reopening outlook, but broad shut down isn’t expected.
St. Louis Federal Reserve President James Bullard remains optimistic besides COVID-19 cases.
Eric Rosengren, president and CEO of Boston said that the US economy expected to remain weaker than many hoped through summer, autumn.
Meanwhile, from across the pond, the UK Chancellor Rishi Sunak delivered his plans to help support the economy as it emerges from the lockdown. The measures were widely leaked beforehand and were small in size relative to the downturn, so the market reaction was limited.
Germany's Merkel says we should prepare for the possibility of not reaching Brexit deal with the UK.
In other themes, US-China tensions continue to boil on the back burners, but US Kudlow was optimistic that the trade deal is not dead. The Hong Kong dollar peg noise fizzled out in, regarded as unrealistic that the US would carry-out a break of the peg to punish China.
USD: The US dollar was pressured to test below a critical support line in the DXY.
Dollar index selling has also been reinforced by this week’s so-called death cross, with the 50-day moving average having crossed below the falling 200-DMA.
CAD: The determination of its safe-haven bid was feeding through into commodity-FX with the CAD getting the biggest boost, despite the deficit figures out of Canada, boosted by sturdy oil prices. USD/CAD fell below its 200-day MA at 1.3499.
Reuters reported that Canada's budget deficit is now forecast to hit C$343.2 billion ($253.4 billion), the largest shortfall since the Second World War, amid record emergency aid spending in response to the COVID-19 pandemic, Canada's finance department said Wednesday.
GBP: The pound was able to benefit from Breix t hopes of a compromise and by British Finance Minister Rishi Sunak’s recovery plan. Investors were able to simply shrug-off Merkel’s Brexit gloom. The Sterling bulls pierced 1.260 and now eye 200-DMA resistance ahead of 1.2700. EUR/GBP stuck to a Wed range 0.9010-0.8978, with dollar-based moves. The recent cross weakness has aided GBP ascent vs USD and other major currencies.
AUD: AUD/USD was able to capitalise on the upbeat risk tones. The currency started out in a chop in the European morning before moving higher to 0.6940 as stocks & commodities were bought. The AUD/USD technicals are bullish with the 10 & 21-DMAs lending support.
EUR: Bulls were in charge from a low in the 1.260s until a high of 1.1351. The pair snow needs to hold above the 61.8% Fibo of the pullback from June’s high at 1.1325 and the 200-week moving average at 1.1335 on a daily and weekly basis. Bulls will then look to June’s 1.14225 high ahead of March’s peak and a Fibo target by 1.1500.
Gold traded above $1,800 to $1,818 the high. Flight for safety will continue to drive gold prices higher.
WTI Crude Oil is trading between the $40/41 level following bearish crude oil inventory figures. EIA data suggested a stronger-than-expected inventory build-up in the US. Oil inventories, increased by 5.7mbbl, against an expected 3.11mbbl.
Cryptocurrencies are edging up, with Bitcoin trading at a high of 9475.
The economic calendar features China CPI for June.
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD continues to trade in positive territory above 1.0700
EUR/USD has managed to stay in positive territory above 1.0700 despite having retreated modestly in the early American session. ECB President Lagarde reiterated that inflation in the Eurozone is projected to remain too high for too long, helping the Euro keep its footing.
Gold falls below $1,980 as US yields rebound
Gold price has turned south and dropped below $1,980 after having rallied to a fresh multi-month high of $2,010 earlier in the day. The 10-year US Treasury bond yield has turned positive on the day near 3.5% following the sharp decline seen in the European session and weighed on XAU/USD.
GBP/USD rises to fresh multi-week highs above 1.2250
GBP/USD has gathered bullish momentum and advanced to its highest level since mid-February above 1.2250 on Monday. The US Dollar struggles to find demand following a mixed opening in Wall Street and allows the pair to cling to its daily gains.
Bitcoin price primed to revisit $33,000 as global market turmoil rages on
Bitcoin (BTC) price is rallying in a full recovery story after a harsh and long crypto winter through most of 2022. It looks inevitable that BTC will soon take out $30,000 and march higher.
UBS ends Credit Suisse Crisis with $3.25 billion buyout, CS stock purchased for 0.76 CHF
CS is no more. Over the weekend the Swiss National Bank organized a buyout of the struggling bank by the only other Swiss lending giant – UBS.