The market sentiment gained an additional boost from the news that a COVID-19 vaccine developed by German biotech firm BioNTech (O:BNTX) and U.S. pharmaceutical giant Pfizer (N:PFE) has shown potential and was found to be well tolerated in early-stage human trials.
Sterling traded at $1.2477 , flat in early Thursday trade but having gained 1.1% so far this week. The Australian dollar fetched $0.6919 , having gained 0.7% on the week.
The euro changed hands at $1.1252 (EUR=), maintaining its gain of 0.3% since the start of week.
The U.S. manufacturing activity rebounded more than expected in June, with the manufacturing activity index by the Institute for Supply Management (ISM) hitting its highest in 14 months as firms and businesses resumed operations.
Similar surveys from China, Germany and France all pointed to a recovery in factory activity while the ADP National Employment Report showed June private payrolls increased 2.369 million jobs.
Data for May was revised upward to show payrolls surging 3.065 million, instead of tumbling 2.76 million as previously estimated.
More closely watched jobs reports from the government, due later in the day ahead of U.S. public holiday on Friday, are expected to show an increase of 3 million non-farm payrolls in June.
There are concerns about whether the U.S. economy can sustain its recovery as coronavirus infections surge in many parts of the United States.
California dramatically rolled back efforts to reopen its economy on Wednesday, banning indoor restaurant dining in much of the state, closing bars and stepping up enforcement of social distancing and other measures as COVID-19 infections surge.
Against the yen, the dollar traded at 107.45 yen , having fallen 0.4% the previous day as it was unable to recover losses made in Asian trade on safe-haven bids.
"If we see further spikes in coronavirus cases, I would expect both the dollar and the yen to strengthen against other currencies," said Tohru Sasaki, head of Japan market research at J.P. Morgan.
Leave a Comment :
We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.
Trading CFDs on leverage involves significant risk of loss to your capital.
Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. The Website should not be relied upon as a substitute for extensive independent market research before making your actual trading decisions. Opinions, market data, recommendations or any other content is subject to change at any time without notice. DrForexOfficial, will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
We do not recommend the use of technical analysis as a sole means of trading decisions. We do not recommend making hurried trading decisions. You should always understand that PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.