United States consumer inflation figures for June will be out on Thursday. Meanwhile, a key gauge of consumption will be out on Thursday.
This week will see the start of the United States corporate earnings season. This will provide another window to assess the scale of the damage as well, as the recovery, from the pandemic.
As the outbreak has mostly been contained, economic recovery is gaining momentum in China. Thus, investors are focusing on this sector.
On Tuesday, China will release its June trade data. A batch of other data will come out on Thursday. This additional data will include second-quarter GDP.
In early trade, the Chinese yuan stood flat at 7.0068 per the United States dollar.
Euro maintained its slow uptrend since late last month, trading at $1.1314.
A planned European Union summit on July 17-18 was on the horizon, something very important for the euro. Their leaders need to seek to bridge the gaps in long-term economic stimulus and budget plans.
Charles Michel is the European Council President. He proposed a smaller joint European Union budget for 2021-27 than previously envisaged, to placate thrifty countries in the north.
The United States Situation
The United States dollar traded at 106.915 yen. It was off two-week lows of 106.635 set on Friday.
Meanwhile, investors focused on looming financial data from around the world. They looked at United States corporate earnings, gauging whether the market’s guarded optimism on the economic outlook is justified. The U.S. dollar started the week with a soft tone on Monday.
Investors bought into risk-sensitive currencies. This is because the worst of the sweeping impact of pandemic was over. Therefore, the greenback ended its third week of losses.
Against a basket of currencies, the U.S. dollar index stood at 96.586, down slightly after having lost of about 0.5% last week.
Coronavirus cases in the United States continued to surge over the weekend.