Forex Today: US coronavirus deaths drive dollar higher, politics, Canadian jobs, COVID-19 stats eyed
- 10th July 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS, FUNDAMENTAL ANALYSIS
Here is what you need to know on Friday, July 10:
Risk-off: Stocks have been falling and the dollar recovering amid worrying US coronavirus figures and also concerns about the policies of Joe Biden, who is challenging President Donald Trump. Additional COVID-19 updates, Canada’s jobs report, and US producer prices are eyed.
The US reported a total of 867 coronavirus deaths on Thursday, with Texas, Florida, and California hitting single day peaks. Cases remain near 60,000 with reports emerging that testing is under stress. New York, where the disease is under control, bans large events at least until October. Hospitals in Arizona, Texas, and Florida are under stress.
Presumptive Democratic nominee Joe Biden delivered a speech about the economy and said that “the era of shareholder capitalism must end” and that “Wall Street bankers and CEOs didn’t build America” – comments that sent shivers down investors’ spines. He’s leaning toward the left-wing of his party may trigger more volatility ahead of the elections.
- 2020 US Elections: China is rooting for Trump, five reasons and market implications
- The foreign policy and market impact of a Biden administration: China, Iran and the West
US producer prices for June are set to edge up yet remain negative year on year. The report serves as a warm-up toward next week’s consumer figures.
Gold has behaved like a risk asset and retreated from the peak, yet it is still hovering around $1,800.
EUR/USD is capped under 1.13 amid dollar strength. EU leaders have yet to agree on the fiscal plan. In the meantime, Ireland’s finance minister Paschal Donohoe was elected Eurogroup president.
GBP/USD is hovering under 1.26, off the highs. The UK continues to gradually reopen the economy. The new £30 billion fiscal stimulus plan and deadlocked Brexit talks are in play.
USD/CAD is trading around 1.36, pushing higher by falling oil prices and the risk-off mood. Canada’s jobs report is set to show another month of recovery, with around 700,000 jobs gained and a drop in the unemployment rate.
See Canada Jobs Preview: June is looking better and better
AUD/USD is trading closer to 0.6930 amid the risk-off mood, Melbourne’s lockdown, and worsening Sino-Australian relations. Inbound flights to Australia are set to be halved.
USD/JPY is hovering around 107, with the yen benefiting from safe-haven flows. COVID-19 cases in Tokyo continue rising, hitting 243 on Friday.
Coronavirus: The World Health Organization confirmed that coronavirus can spread through the air. The global number of COVID-19 infections topped 12 million and mortalities surpassed 540,000.
Cryptocurrencies have pared their gains, with Bitcoin trading below $9,200. Altcoins continue experiencing high volatility.