EUR/USD rises after charting biggest single-day losing run in two months
- 22nd June 2020
- Posted by: Hakeem
- Categories: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS, TECHNICAL ANALYSIS
- EUR/USD rises alongside gains in the US stock futures.
- Risk assets, however, are not out of the woods yet as virus concerns and geopolitical tensions linger.
- The data calendar is light and focus is on German Bundesbank President’s speech.
EUR/USD is flashing green at press time with risk assets better bid despite the rise in the coronavirus infection rate in the US, Germany, parts of China and some developing nations.
The pair is currently trading at 1.1192, representing a 0.17% gain on the day, having defended Friday’s low of 1.1168 during the early Asian trading hours. EUR/USD suffered a 0.3% decline on Friday to register its fourth straight daily loss. That is the longest daily losing run since early April.
Both EUR/USD and the S&P 500 futures had begun the week on a negative note in early Asia with the latter falling as much as 1% on renewed coronavirus concerns triggered by a faster rise in the number of cases in the US and Germany and Australia’s decision to re-impose restrictions in its second-most populous state.
The early decline, however, was short-lived, possibly due to President Trump’s recent statement that his administration won’t impose a total lockdown again. The futures are now up over 0.6% and are likely weighing over the US dollar.
While the government may not impose a total lockdown, the private sector could respond by shutting down outlets if the situation worsens. In fact, Apple did close some stores on Friday. In addition, tensions between the two Koreas as well as China and India continue to summer.
Put simply, risk assets are not out of the woods yet and gains in the stock futures and high beta currencies need to be viewed with caution. On the data front, German Buba Monthly Report is scheduled for release during the European trading hours. Traders would also take cues from German Buba President Weidmann’s speech scheduled at 12:00 GMT.