(02 JUNE 2020)DAILY MARKET BRIEF 2:Dollar own on resilient risk appetite on post-Covid crisis

<p>The US dollar is sold against most major currencies, although other safe haven assets including US treasuries, yen, Swiss franc and gold remain bid. The yellow metal sees support near the $1725 per oz, even though the buyers lose appetite approaching the $1750 mark on uncertainty regarding a renewed risk sell-off despite unpromising news from the US, China front. The EURUSD advanced to 1.1153 on Monday on the back of a broadly softer US dollar. Technically, a major Fibonacci resistance at 1.1160 (38.2% retracement on March debasement) shelters some short-term offers. We could see a minor downside correction as the daily RSI index points at overbought market conditions. However, the strengthening positive momentum hints that the single currency could clear the 1.1160 offers and make a move towards 1.1200/1.1220, the 100-week moving average. Likewise, Cable owes its recent strength to the global debasement in greenback. The GBPUSD traded above its 100-day moving average (1.2485) for the</p>