Earlier in the Day:
It’s was a quiet start to the week on the economic calendar. There were no material stats through the Asian session to provide the majors with direction.
A lack of stats left the markets in the hands of geopolitics and COVID-19.
Negative sentiment towards the U.S – China spat and a continued rise in new COVID-19 cases weighed on risk appetite.
News of the Republicans agreeing on the next Stimulus package in the U.S supported riskier assets in the early part of the day, however.
Economic data from the U.S was skewed to the negative late last week, making fresh stimulus vital to economic recovery.
Looking at the latest coronavirus numbers
According to figures at the time of writing, the number of new coronavirus cases rose by 213,347 to 16,412,794 on Sunday. On Saturday, the number of new cases had risen by 268,668. The daily increase was lower than Saturday’s rise and 246,207 new cases from the previous Sunday.
Germany, Italy, and Spain reported 663 new cases on Sunday, which was up from 646 new cases on Saturday. On the previous Sunday, 491 new cases had been reported.
From the U.S, the total number of cases rose by 56,130 to 4,371,839 on Sunday. On Saturday, the total number of cases had increased by 67,398. On Sunday, 26th July, a total of 65,368 new cases had been reported.
The Day Ahead:
For the EUR
It’s a relatively busy day ahead on the economic calendar. Key stats include July’s IFO Business Climate Index figures for Germany.
Expect the EUR to respond to the figures, with forecasts pointing to a slight pullback amidst the spike in new COVID-19 cases.
Away from the economic calendar, chatter from Beijing and Washington and COVID-19 figures will also influence.
From Brussels, the progress of the EU Recovery Fund will also be in focus.
At the time of writing, the EUR was up by 0.33% to $1.1695.
For the Pound
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction.
A lack of stats will leave the Pound in the hands of Brexit and market risk sentiment.
At the time of writing, the Pound was up by 0.29% to $1.2831.
Across the Pond
It’s a relatively busy day ahead for the U.S Dollar. June’s durable goods and core durable goods orders are due out later in the day.
While we can expect market reaction to the numbers, the U.S stimulus package, COVID-19, China, and Trump will remain the key drivers.
At the time of writing, the Dollar Spot Index was down by 0.38% to 94.079.
For the Loonie
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.
A lack of stats will continue to leave the Loonie in the hands of market risk appetite.
At the time of writing, the Loonie was up by 0.19% to C$1.3390 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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