The U.S., the world’s economic engine, has posted its largest number of daily new infections since the outbreak began, and investors will be wary of what the new earnings season will deliver when it begins in earnest next week.
Although Europe appears to have done a good job of containing the Covid-19 virus, the European Commission revised its economic forecasts for this year downward to show a contraction of 8.7% in the euro zone. There are now over 12 million global cases, according to Johns Hopkins University data, with several countries re-imposing lockdowns to curb fresh outbreaks.
The dollar was down on Thursday morning, with investors retreating from the safe-haven asset over increased hopes of an economic recovery. The USD/JPY pair was down to 107.21, while the GBP/USD pair gained 0.22% to 1.2637. EUR/USD traded at 1.1357, up 0.27% on a day.
Oil prices stagnated Thursday, despite U.S. government data showing Wednesday that gasoline stockpiles fell by much more than expected as demand climbed to its highest level since late March. Prices have been held in a narrow band over the past two weeks as concerns about a spike in coronavirus cases globally tempers optimism about a recovery in fuel demand.
Gold was down on Thursday morning in but stayed above the $1,800 mark for a third consecutive day. The yellow metal reached levels not seen since 2011 as investors flocked to the safe-haven asset.
There isn’t any major market-moving economic data due for release from Europe and UK. Meanwhile, the US economic docket highlights the release of Initial Weekly Jobless Claims, which will be looked upon for some meaningful trading opportunities later during the early North American session.