Skip to content. | Skip to navigation

Personal tools
You are here: Home topics Foreign Exchange Dollar higher as Covid -19 cases climb - Euro currency news daily

Dollar higher as Covid -19 cases climb - Euro currency news daily

— filed under: , ,

GBP - British Pound

There is a general risk off mood in the markets this morning as Coronavirus cases around the world steadily increase. In the UK the number of fatalities continues to fall but faces a test as more and more restaurants/pubs begin to open their doors after restrictions were relaxed at the weekend. 16 people were reported to have died from official government figures released on Monday however we will likely see an increase today because of the way the weekend's data is collated. The government will hope these figures continue to move lower so more and more UK business can reopen and the economy can fight back from what is likely to be its deepest recession of modern times.

Yesterday's one set of data of note was the UK Construction PMI which beat estimates coming in at 55.3. The rest of the week is relatively quiet on the data-front so most attention will likely be drawn to UK Chancellor Rishi Sunak's summer statement in parliament tomorrow which is due to unveil how the government plans to support sectors such as the arts with loans and grants to the tune of £1.6b expected. The phasing out of the furlough scheme will also likely draw attention as the government tries to encourage business to bring staff back to work. GBP/EUR trades at 1.1050.

Key Movers

Stock markets around the world have given up yesterday's gains overnight as Coranvirus continues to cause concern. The US is close to nearly 3 million positive tests with over 130k deaths as cases continue to rise in southern states such as Florida, Arizona and Texas. In Australia, lockdown has been reimposed in Melbourne after a recent spike in infections. In Japan, there has been a recent rise in cases in Tokyo and India has overtaken Russia to third in the world for confirmed cases behind only the States and Brazil. As it appears the situation is slowly coming under control in most of Europe. The focus now appears to be on countries further afield. Yesterdays one set of data of note was the US ISM Non-Manufacturing PMI for June which posted a very strong 57.1 when 50 was expected. This buoyed equity markets, however as mentioned, these gains have now been erased.

After making a play for 0.70, AUD/USD is lower on the announcement of the lockdown in Melbourne and with little top tier data this week to analyse it seems the spread of the virus will dictate currency moves with USD likely to gain should sentiment remain negative. Indeed, the euro which has shown strength of late has slipped a little this morning with EUR/USD back under 1.13 due to risk aversion. The move lower for the euro was likely given some extra impetus by German Industrial Production figures falling short of expectations this morning showing a 7.8% gain when 11% was the median forecast.

EUR/USD currently trades at 1.1285 with USD/JPY at 107.60.

Expected Ranges

GBP/USD: 1.24 - 1.2520 down

GBP/EUR: 1.0990 - 1.1120 down

GBP/AUD: 1.79 - 1.8070 up

GBP/NZD: 1.9020 - 1.9180 up

GBP/CAD: 1.6880 - 1.7030 up

IMPORTANT: This communication has been prepared by marketing/sales personnel of UKForex Limited [CN:04631395] (trading as OFX) (OFX). This commentary is intended for informational purposes only and does not constitute substantive "research" as that term is defined by applicable regulations. OFX is an online foreign currency exchange money transfer service and does not offer any form of margin or speculative trading facilities; and neither it nor its employees are in the business of providing advice to consumers or investors. The information contained herein does not take into account the financial situation or objectives of any particular person and should not be construed as business or investment advice or investment recommendations. Recipients of this communication should exercise independent judgement and obtain advice from their legal, tax or financial advisors.

OFX has taken every reasonable precaution to ensure that any attachment to this e-mail has been swept for viruses. However, we cannot accept liability for any damage sustained as a result of software viruses and would advise that you carry out your own virus checks before opening any attachment.

OFX | 1st Floor, 85 Gracechurch Street, London, United Kingdom, EC3V 0AA

Document Actions

Save on your money transfers with EUbusiness and OFX

Eurozone Economic Calendar

Monday 6 July

08:30 Sentix Investor Confidence(Jul)
09:00 Retail Sales (YoY)(May)
09:00 Retail Sales (MoM)(May)
19:30 CFTC EUR NC Net Positions

Wednesday 8 July

08:45 ECB's De Guindos speech
09:00 European Commission releases Economic Growth Forecasts
14:00 ECB's De Guindos speech

Thursday 9 July

00:00 Eurogroup Meeting

Friday 10 July

07:00 EcoFin Meeting
19:30 CFTC EUR NC Net Positions