What you need to know on Wednesday, July 7:
The dollar appreciated strongly against most major rivals as risk aversion took hold of financial markets. After a long weekend in the US, Wall Street crashed, after US data was softer than anticipated, somehow suggesting a slowdown in US economic growth. The Japanese yen was the exception, it appreciated against the dollar and is currently trading around 110.60.
Yields on US government debt were also considerably lower. The 10-year yield fell to 1.35% and closed at 1.36%.
EUR / USD flirted with 1.1800, modestly bouncing around 1.1820. GBP / USD stands at 1.3800. Commodity-linked currencies tumbled during the US afternoon, slashing early gains.
Gold traded as high as $ 1,815 a troy ounce, but was below 1,800. Crude oil prices fell back from multi-year highs and closed lower, with WTI ending the day at $ 73.65 a barrel. OPEC + has yet to reach an agreement on oil production.
Concerns about the spread of the Delta variant of the coronavirus added to the depressing market mood. Most European countries anticipate a new wave of covid for August. Some cities are already taking action, before that. In the UK, Health Minister Sajid Javid noted that new cases could soon exceed 100,000 a day, but agreed with Johnson to lift the restrictions on July 19.
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