🇺🇸 USD – BEARISH
1️⃣ FED warned that ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.
2️⃣ Doubts on the US strong economic recovery and uncertainties regarding the $1 trillion stimulus package proposed by Senate Republicans, as it faces some form of opposition from the Republicans, Democrats and President Trump.
3️⃣ Chairman Jerome Powell noted that there are signs the increase in infections is starting to weigh on activity while noting that the path forward for the economy is “extraordinarily uncertain.”
4️⃣ Q2 GDP expected to print negative due to economic shutdown.
🇬🇧 GBP – BULLISH
1️⃣ EU’s chief Brexit negotiator Michel Barnier said that a new deal with Britain was possible.
2️⃣ Britain’s government said that it had agreed to buy up to 60 million doses of a possible COVID-19 vaccine being developed by Sanofi and GlaxoSmithKline if it proves successful, the fourth such deal it has struck.
🇪🇺 EUR – BEARISH
1️⃣ European stock markets traded mostly lower as investors fear that a second wave of infections in Europe could dampen the economic recovery.
2️⃣ The Eurozone’s largest economy (Germany) contracted by 10.1% during the second quarter of 2020.
3️⃣ Euro area unemployment up to 7.8% in June.
🇳🇿 NZD – BEARISH
1️⃣ NZ joining the throng of countries cutting extradition ties with Hong Kong in response to China’s new national security law.
2️⃣ Risk-off market sentiment expected as the number of coronavirus infections continued to rise worldwide, with several European countries being forced to re-impose restrictions to combat the spread of the virus.
🇨🇦 CAD – BEARISH
1️⃣ Oil prices dropped over 1% on Thursday amid concerns that second wave of COVID-19 infections could hinder fuel demand recovery.
2️⃣ A turnaround in the global risk sentiment as depicted by a sharp fall in the equity markets.
🇦🇺 AUD – BEARISH
1️⃣ Australia’s Victoria state Premier confirmed a record 723 additional coronavirus cases and announced that face masks are now mandatory across the state, while there were later comments from Australian PM Morrison that the coronavirus spike in Victoria state is very concerning.
2️⃣ Consumer prices in Australia declined by 0.3% year-on-year in Q2 2020. This was the first drop in consumer prices since Q3 1997.
3️⃣ All major economic data RBA is negative.
4️⃣ Weaker-than-expected domestic data, which showed that Building Approvals fell to an eight-year low in June.
🇯🇵 JPY – BULLISH
1️⃣ The Japanese Yen gains as accelerating coronavirus infection rates continued to dampen hopes of recovery for the United States economy.
2️⃣ The recent escalation of diplomatic tensions between the world’s two largest economies forced investors to take refuge in traditional safe-haven assets.
🇨🇭 CHF – BULLISH
1️⃣ The recent escalation in diplomatic tensions between the US and China added to market concerns that the economic recovery in the US could be grinding to a halt amid the resurgence in coronavirus cases.
2️⃣ Risk-off markets sentiment will help Swissy.
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