- Euro (EUR/USD) rallies on stimulus hopes
- Surging COVID-19 cases and Sino-US tensions increase risk sentiment
- GBP drop 0.5% on uninspiring job data
The Euro (EUR/USD) rallied to positive territory on hopes the ECB will agree on a stimulus package on Friday to cushion against the pandemic’s effects. The pair gained even as the dollar remained strong as concerns of the resurgence of the COVID-19 cases threatens to curb economic activity and thus drawing safe-haven demand into the USD.
Time : 07-17-2020
Pivot : $1.1401
Technical View : Long above $1.1421
Targets : $1.1441 – $1.1478 – $1.1509
Comments : Weak Bearish/Sideways
Last Price : $1.1393
Technical View : Short below $1.1381
Targets : $1.1361 – $1.1345 – $1.1324 – $1.1283
Concerns of surging COVID-cases enhance investors risk sentiment
The pair has shown a strong connection with growing risk sentiment because of the concerns, and this is likely to keep the bullish trend going for the pair that has been trading in a range since June. However, some investors have started to see troubling indicators in data following the resurgences of COVID-19 infections in some states across the US. Equally, the simmering Sino-US tension could lead investors to avoid risky traders, and this could support the strong position of the dollar.
There have been signs of economic recovery in the US, and on Thursday, the Department of Commerce reported that retail sales in June rose 7.5% on top of the18.2% increase in May. Reuters polled analysts have projected growth of 5% in retails sales in June.
GBP drops on disappointing employment data
On the other hand, the British Pound (GBP) is trading broadly against the dollar after a 0.5% drop to $1.2520 following disappoints jobs data for June. There has been a drop in the number of workers on company payrolls since March through June by 649,000, with the greatest decline seen at the onset of lockdowns. The Office for National Statistics indicated on Thursday that in June, the number of employees on payroll dropped by 74,400, relative to May’s decline of 124,000 and the 450,000 plunge in April.