US dollar
The second quarter, which has been seeing a substantial rebound in markets, is ending on a positive note, despite the resurgence of COVID-19 in the US and elsewhere. US consumer confidence, the Fed Chair’s testimony, eurozone inflation, and coronavirus figures are eyed.
US stock futures are gaining on the day and the US dollar is losing some ground on the last day of the second quarter.
Investors were encouraged by official Chinese Purchasing Managers’ Indexes which have exceeded expectations and topped 50 points in June – pointing to a rebound and future growth.
EUR/USD has been hovering around 1.12 as a turbulent quarter nears an end. Christine Lagarde, President of the European Central Bank, pledged to continue supporting the economy and called on governments to play their part.
GBP/USD has been struggling below 1.23 as the UK is set to reimpose Leicester, a mid-sized city, under lockdown following a breakout of COVID-19.
USD/JPY caught a fresh bid over the last hour, trading below the 108.00 handle, underpinned by a risk-on rally in the Asian equities and US stock futures.
Gold prices are on course to close the quarter with the strongest increase in years, hovering around $1,770. Central bank support may continue pushing it higher. WTI hovering just below $40.
Moving ahead, market participants now look forward to the flash version of the Eurozone consumer inflation figures for June for some impetus.
Meanwhile, the US economic docket highlights the release of Chicago PMI for June and the Conference Board’s Consumer Confidence Index. Later during the US session, the Fed Chair Jerome Powell, along with Treasury Secretary Steven Mnuchin, will testify before the House Financial Services Committee. This might influence the USD price dynamics and produce some meaningful trading opportunities.
Investors will be also looking at crude oil supply data from the American Petroleum Institute, due later in the day.