- European session review: USD weakens as encouraging economic data and prospects for near-term coronavirus vaccine support risk sentiment
Market news
European session review: USD weakens as encouraging economic data and prospects for near-term coronavirus vaccine support risk sentiment
| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|---|---|---|---|---|---|
| 06:30 | Switzerland | Consumer Price Index (MoM) | June | 0.0% | 0.1% | 0.0% |
| 06:30 | Switzerland | Consumer Price Index (YoY) | June | -1.3% | -1.2% | -1.3% |
| 09:00 | Eurozone | Producer Price Index (YoY) | May | -4.5% | -4.8% | -5% |
| 09:00 | Eurozone | Producer Price Index, MoM | May | -2% | -0.5% | -0.6% |
| 09:00 | Eurozone | Unemployment Rate | May | 7.3% | 7.7% | 7.4% |
USD fell against most major currencies in the European session on Thursday, as risk sentiment improved, underpinned by macro data showing economic recovery worldwide and news of a potential coronavirus vaccine.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.24% to 96.96.
Institute for Supply Management (ISM) reported on Wednesday that manufacturing activity in the U.S. rebounded more than forecast in June, hitting its highest level in more than a year, as the broader economy reopened. China, Germany and France also saw improvements in factory activity last month. The latest portion of encouraging data bolstered hopes of a global economic recovery from the pandemic.
Market participants are now awaiting the U.S. jobs report for June due at 12:30 GMT. Economists forecast that U.S. nonfarm payrolls rose by 3 million last month after a 2.5-million climb in May as the world's biggest economy continues to improve.
The news that Pfizer (PFE) and BioNTech (BNTX) made progress on their COVID-19 vaccine candidate also continued to support sentiment.
Meanwhile, worries about the current COVID-19 situation blunted more aggressive risk-taking. According to the Johns Hopkins Center for Systems Science and Engineering, the total number of confirmed global cases of the COVID-19 rose to 10,694,288, with the U.S. recording 2,686,480 coronavirus cases, the most in the world.
The minutes from the Fed's June 9-10 meeting, which were released on Wednesday, highlighted concerns about a spike in coronavirus infections due to early reopening, and that highly accommodative monetary policy would likely be needed to facilitate the recovery.
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer