Covid Infections Hit New Record, Canada Jobs Data on the Agenda

USD and JPY Up, Equities Down, as Virus Cases Hit New Daily Record

The US dollar rebounded against all but one of the other G10 currencies on Thursday and during the Asian morning Friday. It gained the most against NOK, SEK, EUR, and AUD in that order, while the currency against which it lost some ground was JPY.

DAX — Technical Outlook

In the beginning of this week, the German DAX found resistance near the 12845 hurdle and has been slowly moving lower since. It is now trading below a short-term tentative downside resistance line taken from Monday’s high. Although there is a chance to see a further slide, let’s not forget that the index is still balancing above a short-term tentative upside line, drawn from the low of June 15 th, which may provide additional support if tested. That said, as long as the price remains between the two lines, we will stay neutral.

CAD-traders Await Canada’s Employment Report

Apart from headlines and developments surrounding the coronavirus, CAD-traders will also pay close attention to Canada’s employment data for June, due out later in the day. The unemployment rate is expected to have declined to 12.0% from 13.7%, while the net change in employment is forecast to show that the economy has gained 700k jobs after adding 289.6k in May.

USD/CAD — Technical Outlook

After a strong rebound from one of its key support areas, at 1.3488, USD/CAD is now seen recovering almost everything what it had lost during Wednesday’s trading. In addition to that, the rate has violated a short-term downside resistance line taken from the high of May 22 nd. Such a move might be considered as a positive for the near-term outlook, however, we would prefer to wait for a break above the current highest point of this week, at 1.3624, which may clear the way for some larger advances.

As for the Rest of Today’s Events

During the European morning, we already got Norway’s CPIs for June. The headline rate ticked up to +1.4% yoy from +1.3% as was expected, while the core one inched up to +3.1% yoy from +3.0%. The forecast was for the core rate to stay unchanged.

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