FX Daily Update – US Session, Firmer USD But Quite Markets
- UK consumer confidence for the month in June came in better than expected at -27 versus estimates of -29, potentially indicating a slightly more resilient UK economy.
- The dollar index (DXY) firmed after positive NFP data but lacks real conviction
- US covid-19 cases once again reached another consecutive record, surpassing +50k cases.
Following from yesterdays US nonfarm payroll release, the dollar has been trading slightly firmer, with US equity futures in the green, Asian markets took the cue from US equities and also edged slightly higher.
The US has reported over +50k new covid-19 cases for another consecutive second day, illustrating the rapid growth and spread of the virus.
- UK consumer confidence (June) was slightly better than expected at -27 versus estimates of -29, potentially indicating a slightly more resilient UK economy. The EU and UK chief negotiators are scheduled to meet next week to discuss the future prospects of a UK‐EU relationship. The pound is likely to remain subdued until that meeting takes places, following multiple rounds of unsuccessful negotiations.
- Equities across the board remaining on a backfoot following a second consecutive record of daily US covid-19 cases, to which the need for greater than expected stimulus from the FED has not been put on the spotlight, as the same time, risk assets have remained somewhat supported from a sell off with better than expected job reports in the US.