US dollarMarkets have remained calm and the dollar has been extending its decline, shrugging off rising coronavirus figures and escalating Sino-American tensions. Investors find support in progress toward US fiscal stimulus as the US jobless claims are eyed.

Washington has closed China’s consulate in Houston, amid official allegations of Intellectual Property violations – and unofficial accusations of spying. Beijing vowed to retaliate, potentially by shuttering US consulates in Wuhan or Chengdu.

US coronavirus cases continue to rise at a rapid pace of nearly 70,000 per day and over 1,100 deaths were recorded, the highest since May. COVID-19 cases are also rising in other places, with Tokyo hitting a record 300 infections per day. Hong Kong and Spain are also dealing with outbreaks while most new cases are in Latin America.

EUR/USD is maintaining only a short distance from the 1.16 level as the common currency remains underpinned by the EU accord on the €750 billion recovery fund agreed early in the week.
GBP/USD is trading above 1.27, shrugging off reports that the UK may abandon Brexit talks and criticism on the government’s preparation and handling of the coronavirus crisis.
USD/JPY keeps its range trade intact, and currently sits around 107.11 following the U-turn from 107.28 over the broad dollar decline.

Gold is trading around $1,875, giving little ground after hitting a pea above $1,876 – the highest since 2011. The precious metal is benefiting from monetary and fiscal stimulus. Silver has also surged, catching up with gold and benefiting from potentially higher demand from usages in environmentally friendly technologies.

Prices of WTI are extending the multi-week consolidative theme just above the $40.00 mark per barrel. As of writing, the barrel of West Texas Intermediate was trading at $42.05, up 0.1% on the day.

In the absence of any major market-moving economic releases from the UK and Europe, a scheduled speech by external BoE MPC Member Jonathan Haskel in the session ahead will be looked upon for some impetus.

In the US docket, the weekly report on Initial Claims will be the only release of note later in the NA session seconded by the Leading Index for the month of June measured by the Conference Board.