Risk currencies hammer the Dollar

Today’s news headlines:

  • ‘Rishi Sunak set for July stimulus package to stave off recession’. Plans are being drawn up for a major fiscal event in July, driven by the controversial Dominic Cummings, to help Britain mitigate what’s predicted to be the biggest recession in living memory. Chancellor, Rishi Sunak, is preparing to pump funds into training schemes and infrastructure projects as well as offering help to tech companies. With unemployment rising, Prime Minister Boris Johnson is also expected to make a speech in June encouraging people to go back to work. (Financial Times)

  • ‘Protests hammer US cities still recovering from lockdown’. Fears of new virus outbreaks and deep economic recession could both be worsened by the onset of violent protests in some major US cities. Violence erupted in cities from New York to LA following the police killing of George Floyd, an unarmed black man in the city of Minneapolis. Some protestors rampaged through shopping districts while others attacked police vehicles and municipal buildings. Meanwhile, the violence caused Amazon to scale back deliveries and close down delivery stations in a handful of cities. (Bloomberg)

Today's events, rates, and data 

  • To begin the week, riskier currencies rose against the US Dollar after President Trump stopped short of imposing new sanctions on China during Friday’s news conference. There was also a marginal improvement in Chinese manufacturing data overnight. Continued violent protests across the US provided another catalyst for the Greenback’s slide, as investors worry this might hamper the economic recovery in the country. S&P 500 futures fell, while FTSE 100 futures rose on reports of more UK stimulus.

Today's events

Chinese Manufacturing PMI: 50.6 vs 50.8 previously
Chinese Non-Manufacturing PMI: 53.6 vs 53.2 previously
Eurozone Final Manufacturing PMI: 9:00am
UK Final Manufacturing PMI: 9.30am
US ISM Manufacturing PMI: 3:00pm

Interbank rates:

GBP/USD: 1.2400
GBP/EUR: 1.1135
EUR/USD: 1.1140