FX Update – June 29 – Softer USD to start the week

<h3>EURUSD, H1</h3>
<p>The Dollar has traded mostly softer so far today. Asian stock markets have tumbled, though US equity index futures have posted moderate gains, rebounding a little after closing quite sharply in the red on Wall Street on Friday. The Yen concurrently traded with a neutral-to-softer bias, despite the risk-off backdrop in regional equity markets, which were largely viewed as a catch-up trade to the drop in North American markets on Friday. Weekend news showed a continuing vault higher in new coronavirus cases in the US, which is forcing some states to reconsider their reopening plans. New Zealand prime minister Ardern also said that it is “untenable” to open up borders at this time. More positively, a candidate vaccine being developed in China has received special military drug approval after passing clinical trials.</p>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/06/2020-06-29_11-35-21.png"><img class=" wp-image-145582 aligncenter" src="https://analysis.hotforex.com/wp-content/uploads/2020/06/2020-06-29_11-35-21-300×122.png" alt="" width="646" height="263" srcset="/wp-content/uploads/2020/06/2020-06-29_11-35-21-300×122.png 300w, /wp-content/uploads/2020/06/2020-06-29_11-35-21-1024×418.png 1024w, /wp-content/uploads/2020/06/2020-06-29_11-35-21-768×313.png 768w, /wp-content/uploads/2020/06/2020-06-29_11-35-21-696×284.png 696w, /wp-content/uploads/2020/06/2020-06-29_11-35-21-1068×436.png 1068w, /wp-content/uploads/2020/06/2020-06-29_11-35-21-1029×420.png 1029w, /wp-content/uploads/2020/06/2020-06-29_11-35-21.png 1164w" sizes="(max-width: 646px) 100vw, 646px" /></a></p>
<p>Among the main currencies, <strong>EURUSD</strong> floated to a five-day peak at <span><strong>1.1267</strong></span> as the narrow trade-weighted <strong>USDIndex</strong> ebbed to a five-day low at <span><strong>97.15</strong></span>, which is near the halfway point of last week’s range. <strong>USDJPY</strong> edged out an intraday low at <span><strong>107.38</strong></span>, with the pair remaining well within its Friday range. <strong>EURJPY</strong> lifted to a six-day high. <strong>AUDJPY</strong> gained modestly, but remained within its Friday low and high. <strong>USDCAD</strong> declined moderately, to a <strong><span>1.3645</span></strong> low, remaining above Friday’s nadir at 1.3625. Front-month <strong>USOil</strong> futures fell over 2% to a four-day low at <strong><span>$37.52</span></strong>, whilst <strong>Gold</strong> continued in positive territory but is capped at <span><strong>$1774.20</strong></span> so far today and currently trades down at the $1770.00 zone. The daily pivot point resides at $1763.00.</p>
<p>Ahead this week, the calendar is busy across the globe with May and June economic data, which are likely to further evidence the strong rebound from the April lockdown trough. The data may be somewhat overlooked by markets with primary focus falling on the infection rate of the coronavirus, amid worries of double-dip recession, or at least a post-rebound growth slump. Note that US markets will close on Friday for the Independence Day holiday.</p>
<p><strong>Click </strong><a href="https://www.hotforex.com/en/trading-tools/economic-calendar.html"><strong>here</strong></a><strong> to access the HotForex Economic Calendar</strong></p>
<p><strong>Stuart Cowell</strong></p>
<p><strong>Head Market Analyst</strong></p>
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