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
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. 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.