Shallow bounce unlikely to settle sentiment...>

FOREX: Shallow bounce unlikely to settle sentiment

- Equity futures are higher early Friday, with the E-mini S&P up around 70

points from the overnight lows after the precipitous decline Thursday. The

bounce is unlikely to shore up sentiment into the weekend, particularly if key

reopening states in the US (namely Florida, Texas) continue to report an

accelerating number of COVID cases.

- Currency markets reflect the minor stock bounce, with JPY on the backfoot

(helping boost USD/JPY back above Y107) and growth proxy currencies edging

higher. AUD/USD has bounced close to a cent against the greenback in

Asia-Pacific trade, but remains well below the week's highs printed post-Fed at

$0.7063.

- A raft of UK economic data painted a dire picture for economic activity, with

monthly economic activity shrinking at the fastest pace on record as the UK

underwent lockdown. GBP/USD has been somewhat resilient, retaking $1.26.

- US import/export price indices and the prelim June reading of Uni. of Michigan

consumer confidence are the highlights. ECB's Wunsch is also due to speak.