Markets preview 6.7.2020

Euphoria is back! Markets surged on Monday as traders eyed the coronavirus developments over the weekend. Since US cases slowed somewhat, it seemed to be enough to fuel another strong rally. 

During the London session on Monday, US indices were trading 1.5% stronger, while EU benchmarks outperformed slightly. 

It is essential to add that when US futures are up during the day, they usually fade or even decline during the US session, with this phenomenon occurring rather frequently. 

From other news. German factory orders continued the recent data trend of suggesting a recovery, jumping 10.4% in May, admittedly slightly below estimates, after falling by a revised 26.2% the previous month.

In the FX, the greenback traded lower against other major currencies as risk appetite usually leads to the selling of the US dollar. The EURUSD pair advanced toward the 1.13 level, while commodity-linked currencies outperformed today. 

Later in the day, the US non-manufacturing ISM is expected to rise to 50.0 for June, up from 45.4 previously. However, the sub employment index is forecast to remain weak near 31.0.