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