Earlier in the Day:

It was a quieter start to the day on the economic calendar, following yesterday’s data deluge. The Kiwi Dollar was back in action this morning.

Looking at the latest coronavirus numbers

On Thursday, the number of new coronavirus cases rose by 247,059 to 13,935,944, according to figures at the time of writing. On Wednesday, the number of new cases had risen by 242,529. The daily increase was larger than Wednesday’s rise and 223,514 new cases from the previous Thursday.

Germany, Italy, and Spain reported 2,175 new cases on Thursday, which was up from 1,523 new cases on Wednesday. On the previous Thursday, 1,190 new cases had been reported. Notably, Spain reported 1,361 new cases on Thursday.

From the U.S, the total number of cases rose by 72,063 to 3,693,700 on Thursday. On Wednesday, the total number of cases had increased by 71,670. On Thursday, 9^th July, a total of 61,067 new cases had been reported.

For the Kiwi Dollar

In June, the Business PMI rose from 39.7 to 56.3, following a rise from 26.1 to 39.7 in May. In April, the PMI had tumbled to a record low 26.1.

According to the June survey,

• New Zealand’s manufacturing sector expanded for the 1^st time since February

• Looking at the sub-indexes:

  • The production sub-index rebounded from 38.1 to 58.6, with the new orders sub-index jumping from 39.5 to 58.6.

  • The employment sub-index rose from 39.2 to 48.5.

The Kiwi Dollar moved from $0.65372 to $0.65396 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.17% to $0.6546.

Elsewhere

At the time of writing, the Japanese Yen was flat at ¥107.27 against the U.S Dollar, while the Aussie Dollar was up by 0.14% to $0.6981.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats include finalized June inflation figures for the Eurozone.

The finalized numbers are unlikely to have a material impact on the EUR, however. Market risk sentiment and COVID-19 news updates will continue to be in focus, along with any Brexit chatter.

From the EU, leaders are scheduled to discuss the EU Recovery Fund mechanics that will be a key driver on the day. Any discord and expect the EUR to come under pressure.

At the time of writing, the EUR was flat at $1.1384.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction.

A lack of stats will leave the Pound in the hands of Brexit and market risk sentiment on the day. While there has been news of progress towards trade agreements with a number of economies, plenty of uncertainty remains.