The dollar held firm on Friday as caution over rapid rises in U.S. coronavirus cases cast doubt over the reopening of the economy, keeping the allure of its safe-haven value.
Also supporting the greenback was the broader rise in corporate demand typically seen towards the end of the month. That helped the dollar to stay firm despite the stubbornly upbeat risk appetite seen in global equity markets, which comes even as new coronavirus infections surge.
Against the yen, the dollar traded at 107.10 yen, having gained 0.5% in the overnight session. The euro eased to $1.1210, losing steam after hitting a one-week peak of $1.1348 on Tuesday though the currency has maintained weekly gains of about 0.4%. Sterling slipped to $1.2415, off this week’s high of $1.2541 touched on Wednesday.
WTI crude rebounded from $37 per barrel and probably will make another attempt above $40. But fears of further damage to the global oil demand could eclipse amid the optimism of seeing more fiscal and monetary stimuli.
Robust demand in safe-haven assets kept Gold above the $1,760 per oz level. Gold was also impacted by the U.S. Federal Reserve’s new capital rules, which it announced on Thursday.
ECB’s President Lagarde speech will hog the limelight in the European session, amid absent relevant market moving economic releases.
In the North American session, the US economic docket features the release of Core PCE Price Index, Personal Income/Spending data and the final version of the June Michigan Consumer Sentiment Index. Today’s data could confirm a robust rebound in US consumer spending in May, despite a significant loss of revenue due to the business lockdown and depressed labour market conditions.
US Dollar remains stable Despite COVID-19 Worries – Focus on US Data
Published on 2020-06-26 07:46
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