The sterling surged above $1.25 on Thursday for the first time in a week. It last sat at $1.2483, rallying by almost 2% from a one-month low hit on Monday. Meanwhile, the Euro traded at $1.1257 on Thursday, maintaining its gain of 0.3% since the start of the week.
The New Zealand dollar gained a little in Asia, soaring by 0.2% to a one-week high of $0.6492. However, the Japanese yen was steady at 107.53 yen per dollar on Thursday, as investors remained cautious.
According to reports from China, France, and Germany, there was an improvement in factory activity. The ADP National Employment Report showed that June private payrolls added almost 2.4 million jobs.
While COVID-19 cases still rise daily, we may be able to defeat the pandemic soon. German biotech firm BioNTech developed a coronavirus vaccine, and U.S. pharmaceutical giant Pfizer showed potential in early-stage human trials.
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How did the U.S. dollar fare?
The dollar fell marginally against a basket of currencies. It’s on a track toward its worst week in a month, with a 0.4% fall. The greenback wavered against more sensitive currencies on Thursday due to positive U.S. and European economic data. Concerns about the pandemic halted more aggressive risk-taking ahead of upcoming U.S. jobs figures.
U.S. manufacturing activity rebounded more than expected in June, with the Institute for Supply Management’s manufacturing activity index rallying to its highest in 14 months.
Some experts think that nonfarm payrolls figures will show an increase of 3 million jobs for last month. But estimates vary widely. Furthermore, the data comes with growing worries about whether the U.S. economy can sustain its recovery as coronavirus infections rise rapidly.
According to Vishnu Varathan, the head of economics at Mizuho Bank in Singapore, any reasonable reaction to this number must also price in the resurgence in cases. According to him, a strong beat is needed to boost sentiment. Meanwhile, some states reimposed limits on business and personal activity.
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