The dollar remained weak yesterday as good news about the US economic hampered safe-haven demand. However, it is looking stronger this morning.
The ISM Non-Manufacturing PMI for the US jumped to 57.1 in June of 2020 from 45.4 in the previous month, beating market forecasts of 50.1. Data also showed that the service sector rebounded in June, showing that the economy is getting back on its feet as restrictions are eased.
However, it is worth keeping in mind that rising infection rates could derail this economic progress as restrictions are, once again, put into place.
Three Federal Reserve Officials are due to speak today, which could shed some light on expectations for the US economy.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
