By Peter Nurse
The dollar fell Wednesday in the beginning of the day in the european session, concerns about the resurgence of the Covid-19 vying with encouraging economic data.
A 11: 05, the dollar index, which tracks the greenback against a basket of six other currencies, remained almost unchanged at 97,343.
The EUR/USD remained stable at 1,1232, the GBP/USD is down 0.1 % at 1,2380, while the USD/JPY declined 0.2 % to 107,67.
The United States have saved 47 000 infections Tuesday, which represents the largest peak on a day since the beginning of the pandemic.
“It is clear that we are not in total control at this time,” said the leading expert in infectious diseases of the countries, Anthony Fauci, in a Senate committee Tuesday, adding that the case could increase to 100,000 per day if the pandemic is not contained.
The forex market has traded in ranges close Wednesday, with investors wary of economic data being closely monitored.
Germany’s retail sales were up 13.9% in may, according to data Wednesday, bouncing back strongly after the decline of 6.5% revised April, while the chinese manufacturing sector has shown promising signs of recovery, according to the manufacturing PMI Caixin.
Later Wednesday, the purchasing managers index of the manufacturing industry of the Institute for Supply Management u.s. should show that the activity in June continued to recover after the lows of 11 years marked in April, while the report on Thursday on the non-agricultural employment in the United States is expected to show that the economy added 3 million jobs in June.
The publication of the minutes of the FOMC meeting in June will also be interesting.
“The discussions of the members of the Fed on the control of the interest rate curve is particularly interesting, as noted by the chairman of the Fed, Powell, in his remarks formulated during the press conference that followed the announcement of the policy”, said the analysts of the Danske Bank, in a research note.
The Riksbank Swedish would make his last announcement of rates later on Wednesday, but market players do not expect a change of policy.
“This time, it seems likely that the Riksbank will present real forecast for inflation, growth and interest rate rather than different scenarios, as was the case in the previous report of economic policy”, said Danske Bank.
The EUR/SEK has stagnated at 10,4682 and the USD/SEK to 9,3193.
The Russian ruble has fallen to its lowest level in more than a month after new allegations in the american press according to which he would have offered premiums to the militia afghan for the murder of american soldiers. These reports have reinforced the fear that the United States does not expand the existing sanctions against Russia.