|Day's Range||107.08 - 107.435|
|52 Week Range||101.2830 - 112.1860|
The dollar has strengthened in early European trade Monday, with investors seeking out this safe haven after the Covid-19 outbreak forced the biggest reversal of U.S. economic reopening to date and the U.S. and China squared off over territorial disputes in the South China Sea. The number of Covid-19 cases globally has now passed the 13 million mark, according to Johns Hopkins University data, jumping by one million cases over the last five days. This has resulted in demand for the dollar as hopes of a quick economic recovery fall, with some countries, including the U.S., re-imposing lockdown measures to curb the spread of the virus.
The US dollar has rallied a bit against the Japanese yen on Monday, but we continue to see a lot of resistance above.
The British pound rallied against the Japanese yen on Monday but we have given back those gains in order to continue the consolidation around the ¥135 level.
The dollar has weakened in early European trade Monday, with investors turning to risk-sensitive currencies amid optimism over the upcoming earnings season even as the Covid-19 outbreak rages on. Goldman Sachs (NYSE:GS) has become a little more optimistic on earnings prospects for the S&P 500 Index this year, lifting its baseline forecast for S&P 500 earnings per share in 2020 to $115, up from a prior estimate of $110. The World Health Organization reported a record 230,370 new cases in 24 hours on Sunday.
The Dollar/Yen finally broke out of its narrow trading range last week despite the recent two-sided shifts in investor sentiment.
The US dollar initially tried to rally for the week, but it is seeming that the ¥107.50 level continues to contain the dollar overall.
The British pound rallied during the week, but continues to face resistance at the crucial ¥135 level. Because of this, I am not overly excited about this pair.
The US dollar had a rough day during the session on Friday, losing money against multiple currencies, and as a result the dollar lost against the yen as well.
British pound fell hard against the yen to kick off the session but found support at the 50 day EMA. We are forming a short-term range to determine where we go.
The dollar paused on Friday as concerns about a surge in coronavirus infections in the United States and elsewhere supported the safe haven Japanese yen. The caution helped to drive the safe-haven yen up by nearly 0.5% to a two-week high of 106.72 per dollar. The Chinese yuan was down about 0.1% at close to 7 yuan per dollar, having touched a near-four-month high of 6.9808 on Thursday.
The dollar and other safe-haven currencies gained against their riskier peers on Friday after a surge in new coronavirus infections in the United States further undermined the case for a quick turnaround in the economy. The caution helped to push up the dollar index about 0.1% in Asia to 96.863 from near one-month low of 96.233 touched on Thursday.
"The question is whether Fitch decides to be tough and downgrade Italy. We expect that it will remain on hold given that the ECB and EU are showing strong support for Italy through QE and the expected recovery fund," said Danske Bank.
US dollar has done little against the yen on Thursday but that should not be a huge surprise as this pair has been struggling with ¥107.50 all week.
British pound has rallied significantly on Thursday again, reaching towards the 200 day EMA. It looks as if the British pound is ready to continue going higher.
Elsewhere, the USD/CNY pair slid 0.2% to 6.9878. The yuan was boosted by better-than expected inflation data for June, with producer prices falling 3% year-on-year. The drop in the PPI was smaller compared with the previous month’s drop of 3.7% and the 3.2% drop analysts had generally forecast. However, the pair is being supported most by the rally in Chinese stocks, which continued for an eighth straight day on Thursday.
It’s a relatively quiet day on the economic calendar. Expect the weekly jobless claims from the U.S, Brexit, and COVID-19 to draw attention.
The US dollar continues to hang around ¥107 as this is a bit of a magnet for price. This is an area that the buyers and sellers both continue to be interested.
British pound rallied against Japanese yen on Wednesday but ran into a lot of trouble at the ¥135 level again. We may get a little bit of a pullback.
The dollar edged higher in early European trade Wednesday, with the safe haven currency in demand as a resurgence of the coronavirus in the United States cast doubt over the strength of the economic rebound. There are almost 11.8 million COVID-19 cases globally as of July 8, according to Johns Hopkins University data, of which the U.S. has the highest known numbers of cases and deaths in the world. A number of Federal Reserve officials expressed concern Tuesday that the surge in infections could adversely impact the economy just as some stimulus programmes are set to expire.
A lack of economic data will leave the markets in the hands of COVID-19 updates and any chatter from China or the U.S…
US dollar rallied a bit against the Japanese yen as we continue to see back and forth around ¥107.50. The market is struggling to find any type of direction.