Let us check the market. Steve Englander works at Standard Chartered in New York. He is the global head of G10 FX research. He said that the weak numbers are unambiguously weak given the programs in place.
Moreover, a strong number could reflect fiscal incentives, a positive for hiring people or for economic improvement.
United States pharmaceutical giant Pfizer and German biotech firm BioNtech developed a COVID-19 vaccine. It showed potential in early-stage human trials. Thus, it has supported this sentiment.
Also, United States manufacturing activity rebounded by more than forecast in June. The Institute for Supply Management’s manufacturing activity index hit its highest point in 14 months.
Similar surveys from France, China, and Germany all pointed to an improvement in factory activity. Meanwhile, the ADP National Employment Report showed that June private payrolls added nearly 2.4 million jobs.
Still, re-openings stall in the United States as case numbers surge. The illness caused by coronavirus, new cases of COVID-10, shot up by nearly 50,000 on Wednesday. Since the start of the pandemic, this is the most significant one-day spike.
The United States Dollar
Per the United States dollar, the safe-haven Japanese yen hung on to overnight gains to hold steady at 107.53. This thus pointed to elevated investor caution.
Meanwhile, the euro changed hands at $1.1257. Thus, since the start of the week, it maintained its gain of 0.3%.
For the first time in a week, the mood also lifted the sterling above $1.25. Having bounced almost 2% from a one-month low hit on Monday, it last sat at $1.2483.
Over the years, analysts expect that the pound could be about 4% stronger. This will be in the case that the European Union and Britain can thrash out a trade deal. That is what Reuters’ poll has found.
The poll respondents forecast the United States dollar would decline over the coming year slowly. Nevertheless, this depends on there being no second shock from coronavirus.
That is the current news of the market.