(02 JULY 2020)DAILY MARKET BRIEF 2:US dollar remained near the 97 leve

In the FX, the US dollar remained near the 97 level and the US 10-year yield steadied below the 0.70% mark.

The EURUSD sees a decent support from dip buyers below 1.12, but has difficulty gathering extra momentum above the 1.1250 mark. The euro outlook remains positive on suitable economic data, business reopening and the expectation that the 750-billion-euro fiscal rescue package would be approved any minute.

Cable displays a clear mean-reversion pattern around its 100-day moving average (1.2385), but the upside potential should remain capped by the 200-day moving average (1.2690).

Gold bounced lower after its attempt on the $1790 per oz on Wednesday. The precious metal bumped into a clear barrier of top sellers prior to the $1800 mark and quickly gave back $25. But the market is besieged by bulls, and price retreats will likely gather tactical longs for a renewed push toward the challenging $1800 target. Support is eyed near $1750.

WTI crude has a steady grip a touch below the $40 per barrel. The EIA data confirmed a 7-million-barrel fall in US oil inventories last week. Alas, the buying interest is hindered by the rising anxiety that the rise in Covid cases will lead to a slower-than-previously-thought recovery in global demand. Tactical shorts will likely remain in charge above the $40 level.