Global Concerns Rising with Spike in Covid-19 Cases
The Dollar reversed this week’s earlier losses to finish higher on Wednesday to reach just under 97 (DXY), as global infection rates in US, China and Europe spike. This has caused concern that a second wave of infections might send economies back into lockdowns. Further fears of tariffs were realised as Trump considers new tariffs on $1.3 Billion of exports from the UK and Europe. Tonight, the Final Q1 GDP print will be released at 8.30pm (SGT) and is expected in at -5% while Durable Goods Orders are expected to jump 10%.
Yesterday, the German lFO Business Climate Index for June was released and beat expectations at 86.2. The Euro found some support off the back of this. Following this, risk appetites wane as COVID-19 cases rose sharply in the USA and the International Monetary Fund downgraded global GDP forecasts. As a result, the Euro fell further. Looking ahead, 2 members of the European Central Bank will be speaking on their views of the economy and policy at 2pm.
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