In the US, a resurgence of new cases of Coronavirus undermined the Trump administration’s hope for a swift return to economic normalcy. On Wednesday, some 60,000 new cases were reported across the US, the largest single day’s number for any country suffering through the pandemic. That news is impacting consumers who prefer the safety of quarantine and lockdowns, despite the urging of some government officials. Safe haven currencies saw a shift in momentum as a result, with the Swiss Franc, Japanese Yen and the US Dollar all seeing an increase in demand. The US Dollar Index moved away from a one-month trough struck yesterday and was trading higher at 96.84 .DXY, a gain of 0.15%.
In Tokyo trading, as of 10:21 am, the EUR/USD was trading at $1.1274, down 0.0851% and sliding from the session peak of $1.12907. The GBP/USD was also lower at $1.259, a loss of 0.115%; the pair has ranged from a low of $1.25808 to a peak of $1.26124. The EUR/CHF was lower at 106.08 Swiss Francs, while the GBP/CHF was down at 1.1849 Swiss Francs.
Oil prices are making great trade opportunities
In Asia, the Australian Dollar moved away from a 1-month peak struck yesterday, with the AUD/USD trading at $0.6947, down 0.1653%. Currencies which are linked to commodities have lost ground on a fall in oil prices, largely as a result of the renewal of lockdown orders in large swaths of the US. The news pushed the USD/CAD higher to C$1.3591, a gain of 0.10% and off the session peak of C$1.36068. Later today, the Canadian Statistics Bureau will report its latest figures on the labor front; analysts are expecting to see the unemployment rate drop to 12% from 13.7%, while the new change in employment should grow to 700,000 for the month of June, well above the 289,600 in the previous month.