Let us check the market. Due to worries about Brexit, the pound has been weighed down. These worries concern the little progress in trade discussions with Europe. Thus, the pound held just above a three-week low at 1.2363 dollar. Now, total global cases of coronavirus are at over 8.7 million. Therefore, currently, the focus has been on whether that fact may drive fresh lockdowns. Localized restrictions have been imposed in Beijing again in order to contain an outbreak.
Moreover, Victoria, a state in Australia, has also re-imposed limits on gathering to contain a spike in cases. Nevertheless, global lockdowns are unlikely. In the morning trade, the risk-sensitive Australian dollar slipped against the yen and the United States dollar. This was before paring losses to inch about 0.2% higher against both. Thus, it last bought at 73.18 yen and $0.6844.
The New Zealand dollar was also a fraction more robust, at 0.6418 dollars. Nevertheless, both currencies have lost the momentum that they had in early June. On Wednesday, the Reserve Bank of New Zealand will announce its latest benchmark interest rate settings. It will most likely keep rates on hold at 0.25%. Thus, it will leave markets to focus on its tone and discussions on negative prices for the future. Investors will be looking at German sentiment surveys and PMI data due on Tuesday.
They will also be looking to the United States consumer sentiment figures to gauge whether encouraging signs of recovery from May can be sustained. There was a jump in net short bets on the United States dollar, at their highest figures since 2018. Thus, this suggests that investors are in a position for the economic recovery of the world to continue apace. This leaves plenty of room for surprises on the downside. There was also a reduction in swap exchanges in central bank currency. Thus, this suggests a return to normality. This is the current news of the market.
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