U.S Jobless Claims, Geopolitics, and COVID-19 To Drive Risk Sentiment and the Dollar
Earlier in the day:
It was a relatively quiet start to the day on Thursday's economic calendar. The kiwi dollar was back in action earlier in the day.
Beyond the statistics, it will be an irritated start to the day. Risk aversion spread in the Asian session. Reports of rising COVID-19 numbers tested risk sentiment early in the day. The number of new coronavirus cases for Wednesday released earlier this morning reflected the peaks.
Check out the latest coronavirus numbers
On Wednesday, the number of new coronavirus cases increased by 174,860 to 9,504,264. The number of new cases increased by 158,646 on Tuesday. The daily increase was higher than Tuesday and 125,202 new cases from the previous Wednesday.
Germany, Italy and Spain reported 1,463 new cases on Wednesday, compared to 952 new cases on Tuesday. Only 2,480 new cases were reported last Wednesday.
From the U.S., the total number of cases increased Wednesday by 38,253 to 2,459,173. The total number of cases increased by 34,399 on Tuesday. A total of 23,628 new cases were reported on Wednesday June 17th.
For the kiwi dollar
New Zealand's annual trade deficit decreased from NZ $ 2,410 million to NZ $ 1,330 million in May, a decrease of NZ $ 1.1 billion.
According to NZ Stats,
Imports totaled $ 4.1 billion in May 2020, compared to $ 5.6 billion (-25.6%) in May 2019.
Motor vehicle imports decreased by NZ $ 451 million (-60.9%).
Imports of oil and products decreased by NZ $ 422 million (-56.2%) from May 2019.
Total exports decreased by NZ $ 350 million (6.1%) to NZ $ 5.4 billion in May 2019.
The logs contributed significantly to the decline, dropping NZ $ 41 million (-12.3%) compared to May 2019.
The kiwi dollar moved from $ 0.64098 to $ 0.64059 after the figures were released. At the time of writing, the kiwi dollar had fallen 0.06% to $ 0.6406.
At the time of writing, the Japanese yen was up 0.01% against the US dollar to 107.03 Yen, while the Australian dollar was down 0.10% to USD 0.6862.
The day before us:
For the EUR
It's a relatively quiet day in the economic calendar. German GfK consumer climate figures for July are expected before the European meeting.
While we expect some influence from the numbers, we are talking about US tariffs for Germany, France and Spain. The last thing the EU needs is a trade war as Trump tries to divert attention from domestic issues.
For Germany, a new cluster and the increase in new cases of COVID 19 on Wednesday in Germany, Italy and Spain will also give cause for concern. Extensive reintroduction of lockdown measures would put the EUR in a dive.
At the time of writing, the EUR was unchanged at $ 1.1251.
For the pound
It is another particularly quiet day in the economic calendar. No material statistics are needed to give direction to the pound.
A lack of statistics will continue to leave the pound in the hands of market risk sentiment and any updates from the Brexit negotiations.
At the time of writing, the pound was down 0.03% to $ 1.2415.
Across the pond
A busy day is ahead of the US economic calendar. Key statistics include weekly unemployment claims and key durable goods orders for May.
While a collection of core orders for durable goods is required, weekly unemployment claims must be well below 1.5 million to support riskier assets ...
The final trade figures for 1st quarter GDP and May should fade into the background on that day.
However, aside from the numbers, the dollar could find more support if states continue to report rising new COVID-19 cases. There could also be more trade war talk from the Oval Office to further test appetite for risk ...
On Wednesday, the dollar spot index rose 0.52%, ending the day at 97.148.
For the loonie
It's a quiet day on the calendar. There are no material statistics outside of Canada that could give instructions to the loonie.
A lack of statistics will leave the loonie in the hands of COVID-19 updates and an appetite for market risks in general.
At the time of writing, the loonie was down 0.04% against the US dollar to $ 1.3643.
In our economic calendar you will find all of today's economic events.
This article was originally published on FX Empire
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