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Currency Market Analysis

Jun 23, 2020 | Currency Market Analysis

Global Themes

Greenback opens stronger as US virus cases spike

The US dollar and other major safe haven currencies fell overnight as US shares started the new week strongly higher.

After US stock futures opened lower yesterday, boosting the greenback, sentiment improved in Asia before further gains were seen in the overnight session.

The US’s Dow Jones gained 0.6% with technology stocks the best performers.

AUD boosted

The Australian dollar was the best performing currency boosted by more positive commentary from Reserve Bank of Australia governor Philip Lowe.

Lowe said the COVID-19 downturn is likely to be shallower than previously thought and upgraded forecasts for employment. The RBA now expects hours worked to fall by 10% rather than 20%.

The euro and British pound were both higher, while the Japanese yen fell.

PMI numbers

Today’s focus is on global PMI numbers – the most up-to-date reading of the global economy.

The early read from Australia saw a sharp jump – services jumped to levels above 50, a sign of expansion, while manufacturing also saw a large increase – but these number came from a low base.

Japanese numbers however were more negative, with the reading at 37.8, below expectations for 39.5.

Later, French, German, UK and US PMI numbers are due.

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