Earlier in the Day:
It was a particularly quiet start to the day on the economic calendar. There were no material stats to provide the majors with direction in the early part of the day.
Later in the Asian session, Japan’s tertiary industry activity index figures are due out though will likely have a muted impact on the Yen.
Away from the economic calendar COVID-19 continued to be a major source of angst for the markets, as new cases surged in the U.S. Over the weekend, however, Trump was talking of a vaccine announcement coming soon. The comments followed on from news on Friday of progress towards successful treatment of the coronavirus. A combination of the two would certainly be a game-changer.
With economic data on the heavier side in the week ahead and earnings season kicking in, there may be some caution, however.
Looking at the latest coronavirus numbers
On Sunday, the number of new coronavirus cases rose by 180,207 to 13,022,319. On Saturday, the number of new cases had risen by 237,217. The daily increase was lower than Saturday’s rise while higher than 156,610 new cases from the previous Sunday.
Germany, Italy, and Spain reported 372 new cases on Sunday, which was down from 412 new cases on Saturday. On the previous Sunday, 407 new cases had been reported.
From the U.S, the total number of cases rose by 55,683 to 3,411,329 on Sunday. On Saturday, the total number of cases had increased by 70,096. On Saturday, 4th July, a total of 107.457 new cases had been reported.
The Day Ahead:
For the EUR
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.
A lack of stats leaves the EUR in the hands of market risk appetite on the day. With the ECB in action this week, last week’s industrial production figures will give the ECB a reason to stand pat on policy.
While an expected hold by the ECB is EUR positive, COVID-19 updates and any chatter from the U.S administration will also need monitoring.
At the time of writing, the EUR was up by 0.11% to $1.1312.
For the Pound
It’s also a particularly quiet day ahead on the economic calendar. There are no material stats due to provide the Pound with direction.
A lack of stats leaves the Pound in the hands of Brexit and market risk sentiment.
Late in the day, BoE Governor Bailey is due to speak and could give some insight into what lies ahead on the monetary policy front.
At the time of writing, the Pound was up by 0.04% to $1.2627.
Across the Pond
It’s a quiet day ahead for the U.S Dollar, with no material stats due out of the U.S to provide the markest with direction.
A lack of stats leaves the Dollar and risk sentiment in the hands of COVID-19 news and geopolitics.
In the early part of the U.S session, FED Chair Powell is scheduled to speak. Expect any comments on COVID-19, the economic outlook, and monetary policy to influence.
At the time of writing, the Dollar Spot Index was down by 0.07% to 96.585.
For the Loonie
It’s a quiet start to the week on the economic calendar. There are no material stats due out to provide the Loonie with direction.
A lack of stats leaves the Loonie in the hands of OPEC’s monthly report and market risk appetite on the day. The continued rise in new COVID-19 cases across the U.S and other parts of the world may well weigh on demand for crude. How the Bank of Canada views downside risks will be key on Wednesday…
At the time of writing, the Loonie was down by 0.03% to C$1.3596 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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