Covid-19 Cases Hit New Record, US-China Tensions Increase

Risk Appetite Stays Subdued on record infections and more US-China Tensions

The dollar traded mixed against the other G10 currencies on Thursday and during the Asian morning Friday. It gained versus CAD, JPY, NZD, and EUR in that order, while it underperformed against NOK, SEK, GBP and CHF. The greenback was found virtually unchanged versus AUD.

Euro Stoxx 50 — Technical Outlook

The Euro Stoxx 50 index continues to slowly grind higher towards the June high, at 3398, while balancing above a short-term tentative upside support line taken from the low of June 15 th. Although the index seems to be struggling with the 3398 barrier, it continues to form higher lows, which gives hope for some buyers. For now, we will take a cautiously-bullish approach and wait for a confirmation break above that 3398 zone, before getting a bit more comfortable with higher areas.

EUR/GBP — Technical Outlook

Overall, EUR/GBP continues to balance above a short-term upside support line drawn from the low of April 30 th. At the same time, the pair is trading below a short-term downside line taken from the high of July 14 th. It looks like the rate is coiling up, which forces us to remain cautious and wait for a violation of one of those lines first, before examining the next short-term directional move.

As the Rest of Today’s Events

During the European morning, we have Eurozone’s final CPIs for June, but as it is always the case, they are expected to confirm their preliminary prints.



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