Dollar Wobbles on PMI Data
The Dollar took a hit Tuesday, following positive European data that gave the Euro a much-needed boost.
The Eurozone currency is currently headed for its best month against the dollar since October, as June’s PMI data beat expectations with a bounce to 47.5, comparing to May’s 31.9. To be fair, the data is still below the 50 marks that separates growth from contraction, but investor sentiment has certainly improved, especially coupled with upbeat data from the UK and the US.
The GBP had too recovered from its three-month low against the euro, and currently holds $1.2514 against the dollar as hopes for a quick economic recovery seem closer than ever before.
Nevertheless, this is not to mean that the rising coronavirus cases in the US are to be forgotten. The market still fears there is a very high possibility economies are to be shut down again (hence the investor cling to gold safe-haven).
"We expect over the coming couple of weeks as we get more clarity on this, state Governors will be in a better position to decide how to proceed," RBC Capital Markets' Chief U.S. Economist, Tom Porcelli, said with regard to US cases.
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