EUR, JPY main beneficiaries as COVID wave.....>

FOREX: EUR, JPY main beneficiaries as COVID wave rolls on

- Headed into the close of the week, markets were clearly fearful of the

Coronavirus wave rolling further through the southern states of the US. The rise

in cases across Florida, Arizona and Texas accelerated further, forcing

officials to rollback reopening plans and raise alert levels across numerous

counties. VP Pence spoke in favour of social distancing at the first Coronavirus

task force briefing in months, unsettling equities, which slipped as much as 2%.

- Clear nerves among markets worked in favour of haven currencies, with CHF and

JPY both higher. EUR also worked its way higher, resulting in EUR/GBP printing

new multi-month highs at 0.91. GBP was the poorest performer after GBP/USD

tripped through key support at 1.2336. 1.2278 the next line in the sand for

further downside.

- Focus in the coming week turns to German and Eurozone inflation data, Chinese

PMI, MNI Chicago Business Barometer, June's US ISM releases and nonfarm

payrolls. This month's NFP release is on Thursday due to July 4th weekend.

Speeches include BoE's Bailey & Haldane, Fed's Powell and ECB's de Guindos.