The previous week of trade was an impressive one from the greenback’s perspective. It racked up handsome gains against both the euro and the pound. The strength was steady, coming from a set of multi-day gains, which saw the pound close the week in the $1.23s while EURUSD sank into the $1.11s.
As the new week commences, many will be keeping a close eye on the US dollar to define whether it’s attempt to subtly regain lost ground turns into a more pronounced rally. The economic calendar will be fairly bare compared to previous weeks this month, however, there are nonetheless several events/data points to keep participants busy.
Firstly, the IMF (International Monetary Fund) are set to release new global forecasts. These are expected to be considerably lower than previous estimates of a 3% contraction. They acknowledge that for the first time in many years, both advanced and emerging economies will collectively be in recession. A dangerous combination.
From the US, this week sees data releases in the form of housing, durable goods, and weekly initial jobless claims.
Finally, domestically and within the eurozone, June flash PMIs will be released which are all estimated to show decent-sized rebounds across both the manufacturing and services sectors.
Have a good week.
Written by Viv Savani. 8:49am, June 22nd 2020
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