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The U.S. dollar nearly makes it to the top of the pack, beating out most currencies on an end-of-week pop higher.

Overlay of USD Pairs: 1-Hour Forex Chart
Overlay of USD Pairs: 1-Hour Forex Chart
USD Weekly Performance from MarketMilk
USD Weekly Performance from MarketMilk

United States Headlines and Economic data

Monday:

Strong pop higher in the Dollar against most of the majors during the Asia session, possibly on global risk-off sentiment thanks to rising coronavirus cases headlines (Beijing Locks Down Part of City After Virus Outbreak at Market) and weaker-than-expected Chinese data.

But global risk sentiment shifted back towards positive during the U.S. trading session to likely send USD lower after better-than-expected U.S. economic data (Empire State index shows stable conditions in June after two months of record declines) and an announcement from the Federal Reserve that they will start buying individual corporate bonds.

Fed’s Daly Says More Fiscal Aid Needed for Equitable Recovery

Fed’s Kaplan says he’s skeptical of yield-curve control

Tuesday:

The U.S. dollar continued to lose its footing during the Tuesday Asia and London session, but risk aversion sentiment picked up during the U.S. session to help USD bounce back. This was likely a reaction to Fed Chair Powell’s testimony that the Fed will not be aggressive with corporate bond buying and that the economy faces “significant uncertainty” on a recovery and broadly positive U.S. economic updates.

Trump team weighs $1 trillion for infrastructure to spur the economy

U.S. May retail sales surge 17.7% in the biggest monthly jump ever

US industrial production bounces back 1.4% in May

U.S. Homebuilder sentiment posts biggest monthly surge ever, a sign housing is rebounding from coronavirus

U.S. business inventories drop more than expected

Fed Chairman Jerome Powell Warns U.S. Economy Faces Deep Downturn With ‘Significant Uncertainty’

Fed’s Clarida Warns Inflation Expectations at Risk of Slipping

Wednesday:

U.S. Homebuyer mortgage demand spikes to 11-year high, as rates hit another record low

Biden opens 13-point advantage as Trump popularity drops to seven-month low

Powell urges Congress not to remove fiscal support too fast

Trump signs bill pressuring China over Uighur Muslim crackdown

Thursday:

U.S. Jobless claims total 1.5 million, worse than expected as economic pain persists

US mortgage rates fall; 30-year at an all-time low of 3.13%

U.S. Lawmakers Propose More Coronavirus Relief for Small Businesses

Philly Fed manufacturing index shows signs of improvement in June

Fed’s Mester says it could take two years for the economy to return to pre-COVID levels

Risk sentiment flipped to negative during the U.S. session (likely a reaction to weaker-than-expected U.S. unemployment data and rising coronavirus cases headlines), likely supporting USD higher.

Friday:

Major central banks to cut the frequency of dollar-funding operations, BOJ says

China will speed up purchases of U.S. farm goods

U.S. current account deficit falls slightly to $104.2 billion in first quarter

Fed’s Rosengren Expects Main Street Program to Build Over Time

USD bulls were able to make one last push higher into the weekend thanks to negative risk sentiment during the U.S. session. Once again, it was coronavirus fears that sparked the risk-off rally, this time off of news that cases were rising in many states and that Apple will close some stores again in states that are seeing a resurgence of Covid-19 cases.