The dollar was impacted against the euro yesterday as tensions with China rose, not just over Hong Kong but also over territorial claims in the South China Sea.
While Europe continues to ‘open up’ and recover from the pandemic, the USA is locking down again. California had 9,561 new cases yesterday, the state’s highest daily total ever.
This led to a new lockdown in California, which has the USA’s largest population and huge economic clout.
However, bigger falls in GBP and other currencies including the Japanese Yen meant that overall the dollar remained stable.
The week continues with plenty of economic data. Today we have import, export and industrial data, tomorrow is jobless claims and retail sales and Friday has housing data.
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