Let us check the situation of the United States and the Market. Risk currencies were mixed: kiwi dollar and Swedish crown changed little on the day. Meanwhile, the Norwegian crown was down 0.2% versus the United States dollar.
Per Jansonn works at Riksbank. He is deputy governor there. Jansonn will speak at 1000 GMT on the economic situation.
Ida Wolden Bache works at the Norges Bank. She is the deputy governor there.
Bache will speak at 1000 GMT in a webinar.
Worse-than-forecasted Australian gross domestic product (GDP) data confirmed that the country’s economy shrank 7% in the three months to June. So, it was put in its first recession in nearly three decades. Thus, the Aussie dollar fell.
Versus the United States dollar, it was at 0.73525 at 0716 GMT. Thus, it recovered some losses. Nevertheless, on the day, it was still down 0.3%.
On Tuesday, the euro rose above $1.20 for the first time since 2018. Nevertheless, after that, it edged back down below $1.19. since the previous session’s New York close, at 0721 GMT, it was at $1.18785, down 0.3%.
On Tuesday, the euro showed no reaction to a slowdown in inflation. Nevertheless, analysts say that it will raise problems for the European Central Bank in the future.
German retail sales fell unexpectedly, down 0.9% in July. It is missing a Reuter’s expectation for a 0.5% increased. Moreover, it is countering hopes that household spending might drive a strong recovery from the coronavirus shock.
COVID-19 spread continues to limit activity. Poland is set to ban direct flights from 44 countries, including Romania, Spain, and Israel.
In the United States, there remain serious differences between the White House and Democrats over proposed government aid.
Thus, the United States dollar index rose after upbeat manufacturing data. After the recession confirmed, the Australian dollar fell. Furthermore, the euro fell back below $1.19.
We can say that there was a positive United States manufacturing data.