Investors focused on looming financial data from around the world. They also looked at United States corporate earnings for gauging whether the market’s guarded optimism on the economic outlook is justified. On Monday, the United States dollar started the week with a soft tone.
Moreover, Investors bought into risk-sensitive currencies. It is because of the worst of the pandemic’s sweeping impact was over. Thus, on Friday, the greenback ended its third week of losses.
Down slightly after having lost about 0.5% last week, the United States dollar index stood at 96.586 against a basket of currencies.
Over the weekend, United States coronavirus cases continued to surge. It is because Florida reported an increase of more than 15,000 new cases of COVID-19 in 24 hours. It is a record for any state. Thus, it surpassed a peak hit in New York in April.
Dollar and Other Currencies
Dollar situation is not bad.
Yukio Ishizuki works at Daiwa Securities. He is a senior currency strategist.
He said that rising coronavirus cases are not favorable. Nevertheless, now, markets seem to think that there is still some distance to a situation where an overflow of the medical system will force them to put limitations on the economy.
Hopes for the development of vaccines and drugs for the disease also support risk sentiment. Economic indicators have so far shown recovery from lockdowns.
Masafumi Yamamoto works at Mizuho Securities. He is a chief currency strategist there. He said that they had seen a rapid rebound after a rapid decline in various economic data. Nevertheless, if you look ahead, the improvement might slow, or we might even see a deterioration given the second infection.
There was a spike in infections in Melbourne, and that could be repeated in the United States. After that, a weekly gauge of consumer confidence in Australia has dropped.
That is the current news of the market.
- Trading Instrument