The market mood remains upbeat and calm as fears of inflation make way to some hope that the Delta variant has a limited impact on vaccinated countries. US consumer confidence and housing figures are eyed. Cryptocurrencies get a boost from Cathy Woods.
The dollar has been extending its gains alongside a minor increase in US Treasury yields. Concerns about higher US inflation after the Federal Reserve’s preferred measure of price rises only met expectations. Core PCE hit 3.4% YoY in May.
The Delta COVID-19 variant continues spreading quickly in the UK, Australia, and also other places, but investors find solace in the relatively limited increase in hospitalizations and deaths. Moreover, a new study has shown that mixing the Pfizer and AstraZeneca vaccines is proving efficient.
EUR/USD is hovering around 1.19 ahead of a speech by Christine Lagarde, President of the European Central Ban, and her hawkish colleague Jens Weidmann of the Bundesbank. Germany and Spain publish preliminary inflation figures for June later in the day.
GBP/USD is trading below 1.39 as the new Health Secretary Sajid Javid seems confident that England will remove restrictions on July 19 as planned. The UK reported over 22,000 covid cases on Monday, the highest since January, yet hospitals remain calm.
Fed member Thomas Barkin speaks later in the day and may provide more insights on close the bank is to tapering bond buys. The S&P/Case Shiller Compositive House Price Index and the Conference Board’s Consumer Confidence figures for June are eyed.
Cryptocurrencies: Renowned investor Cathy Woods announced the launch of a Bitcoin Exchange Traded Fund (ETF), giving a boost to all digital assets. BTC/USD is hovering around $35,000.
Gold is trading below $1,780 and WTI Crude Oil at around $72 in a steady trade. Markets await Friday’s Nonfarm Payrolls.