The US dollar was up on Tuesday morning, reversing its earlier losses as investors turn to the safe-haven asset as COVID-19 cases keep mounting. There were over 11.5 million cases worldwide as of July 7, with the U.S. accounting for almost 3 million of the cases, according to Johns Hopkins University data.
The ever-increasing number of cases took the shine off positive data for the U.S. services sector released on Monday, indicating its return to growth. The ISM Non-Manufacturing PMI for June read 57.1, exceeding analyst forecasts and the previous month’s figure of 45.4.
EUR/USD is trading closer to 1.13, off the highs as optimism about China’s recovery faded and US coronavirus cases remain worrying.
GBP/USD is trading under 1.25 as concerns about Brexit and US coronavirus are in play.
USD/JPY trades above 107.50 as the US dollar bounces across the board amid a souring market mood.
Oil prices fell on Tuesday, erasing earlier gains, on concerns that the surge in coronavirus cases in the United States, the world’s biggest oil user, will limit a recovery in fuel demand.
Gold was up on Tuesday morning, with investors turning to the safe-haven asset as the number of COVID-19 cases continuing to show no signs of abating globally.
Risk remains the key driver in the market and there will be little in terms of economic releases to distract from that in the sessions ahead. Tuesday’s economic docket sees the release of the US JOLTS Jobs Openings, alongside with data from the American Petroleum Institute industry group.