Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Dollar decline continues as investors parse economic data, earnings

share with twitter share with LinkedIn share with facebook
07/13/2020 | 07:36am EDT

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

LONDON, July 13 (Reuters) - The U.S. dollar edged lower on Monday as investors looked to upcoming global economic data and U.S. corporate earnings to gauge whether guarded optimism on the economic outlook is justified.

The dollar ended its third week of losses on Friday as investors bought into risk-sensitive currencies on bets that the worst of the pandemic's sweeping impact was over.

The index that measures it against a basket of major currencies had slipped 0.2% by midday in London to 96.481 .

U.S. coronavirus cases surged over the weekend, as Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state, surpassing a peak hit in New York in April.

"We expect a broad dollar decline to continue, supporting emerging market FX (despite local coronavirus issues) and see euro/dollar at $1.15 in 3 months," Lars Sparresø Merklin, senior FX analyst at Danske Bank, said in a note to clients.

"This continues to be a recurring observation, with markets not being weighed down by the current host of problems with coronavirus in EM and some U.S. states, not least the likely still-weak current earnings."

Merklin added that the market's focus is the direction rather than the level of economic activity, being supported by fiscal and monetary policy.

Hopes for development of drugs and vaccines for the disease are also supporting risk sentiment. So are economic indicators that have so far shown a recovery from lockdowns.

U.S. consumer inflation figures for June are due on Tuesday while retail sales, a key gauge of consumption, are released on Thursday.

The U.S. corporate earning season starts this week, providing another window to assess the scale of the damage, as well as the recovery, from the pandemic.

Strategists at ING Bank said in a note that they see the dollar's recent downtrend consolidating this week.

The euro rose 0.34% to $1.1338, maintaining its slow uptrend since late last month.

Looming large for the single currency this week is a European Union summit on July 17-18, where leaders need to bridge gaps on a long-term budget. Investors will also watch for whether an agreement on a proposed 750 billion-euro recovery fund for the bloc emerges.

The British pound lost 0.1% to $1.2605, off its three-week high of $1.2668 touched last week.

The Australian dollar added 0.4% to $0.6975.

"We've seen a rapid rebound after a rapid decline in various economic data. But looking ahead, the improvement could slow or we could even seen a deterioration given the second round of infections," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

A weekly gauge of consumer confidence in Australia has dropped after a spike in infections in Melbourne and that could be echoed in the United States, where the magnitude of the outbreak is much larger, he noted.

The dollar gained against the safe-haven Japanese yen, to 107.10 yen, up 0.14% on the day. (Reporting by Ritvik Carvalho; additional reporting by Hideyuki Sano in Tokyo; editing by Ed Osmond, Larry King)

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) -0.35% 0.95459 Delayed Quote.5.17%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) 0.00% 75.74 Delayed Quote.-0.53%
AUSTRALIAN DOLLAR / NEW ZEALAND DOLLAR (AUD/NZD) 0.02% 1.08471 Delayed Quote.3.94%
AUSTRALIAN DOLLAR / SWISS FRANC (AUD/CHF) 0.19% 0.65441 Delayed Quote.-3.74%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.10% 0.7149 Delayed Quote.2.01%
BRITISH POUND / AUSTRALIAN DOLLAR (GBP/AUD) 0.28% 1.82868 Delayed Quote.-3.53%
DANSKE BANK A/S 1.13% 103.05 Delayed Quote.-5.47%
EURO / AUSTRALIAN DOLLAR (EUR/AUD) -0.28% 1.64179 Delayed Quote.3.03%
EURO / BRITISH POUND (EUR/GBP) -0.55% 0.89766 Delayed Quote.6.82%
ING GROEP N.V. 2.57% 6.775 Delayed Quote.-38.20%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
05:58pTrump Could Temporarily Block Americans From Returning To U.S. If They're Suspected Of Having Coronavirus- NYT
RE
05:38pCanada says strongly supports right of media everywhere to operate in 'environment free from intimidation, harassment by state authorities'
RE
05:38pRaid on hong kong’s apple daily, arrests of management 'have significantly eroded the press freedom meant to be guaranteed under the hong kong basic law' –canada formin spokeswoman
RE
05:31pTrump, Democrats Open to Restarting Relief Talks Despite Stalemate -- Update
DJ
05:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
05:16pNEWS HIGHLIGHTS : Top Company News of the Day
DJ
05:06pUtilities Flat After Mixed Earnings -- Utilities Roundup
DJ
05:05pFederal Budget Deficit Shrank in July -- Update
DJ
05:05pCommunications Services Down After Mixed Earnings Reports -- Communications Services Roundup
DJ
05:04pTech Down Amid Valuation Concerns -- Tech Roundup
DJ
Latest news "Economy & Forex"