On Monday, with the rising coronavirus case count in the USA described by the Texas governor as “unacceptable levels”, the dollar edged lower against its rivals during the New York trading session.
EURUSD closed with gains around the 1.1250 level as the ECB’s Vice President portrayed his expectation of an economic rebound in the second half of the year.
GBPUSD settled with gains around 1.2460 on the back of dollar weakness. Spot Gold rallied to $1,760 a troy ounce and WTI ended the day above $40 a barrel. The S&P 500 closed 0.63% higher moving 19.48 points higher. The Dow index is 0.59% and the NASDAQ outperforms to rise 1.11%.
The dollar took a dive on Tuesday after statements from White House trade adviser Peter Navarro who implied that the US-China trade deal had fallen apart. The US President Trump and economic adviser Larry Kudlow scrambled to save the situation stating that the trade deal with China was still intact.
Risk-on was the order of the day as all major economies indexes beat expectation in the June PMI preliminary estimates released by Markit. Gold surged to 8-year highs teasing $1,770 amid dollar weakness.
The S&P 500 closed 0.43% higher while the Dow rose 0.50%. The NASDAQ was once again the outperformer rising by 0.74%.
Risk-off ruled on Wednesday with rising Covid-19 cases, the dollar appreciated against its rivals as investors ran to cash. The USDJPY recovered to 107.00 while gold price retreated from 1,779.41 to settle 1,765. GBPUSD eased to 1.2400.
The Dow dropped 2.72% on Wednesday falling 710 points. The S&P 500 just over dropped 2.50% and the NASDAQ fell 2.19%.
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Dollar continued its dominance on Thursday providing a safe cover for investors as concerns of a second wave of coronavirus continued to gain momentum. Major rivals surrendered. Gold prices didn’t move much finishing close to the open price around $1,765 a troy ounce, and WTI finished bullish settling at $39 a barrel.
The Dow outperformed rising 1.18% just shy of 300 points. The S&P 500 rose 1.14% and the NASDAQ jumps 1.09%.
On Friday. Daily Coronavirus cases in the US reached new highs plunging the markets further into risk aversion and driving the strength of the safe-haven dollar even higher.
GBPUSD finished at fresh monthly lows near 1.23. Crude oil price came under pressure due to rising doubts of an economic recovery in H2. Gold soared as a safe-haven finishing at $1,770 a troy ounce.
The Dow tanks 2.84%, 730 points lower on Friday. The S&P 500 drops 2.40% and the NASDAQ falls 2.59%.
It is important to note in your trading, that as we come to the close of the quarter, major pairs may experience wild movement due to quarter end flows as financial participants rebalance their portfolios.
Written by;
Nnadi Victor
An Independent Economics Researcher
