Dollar steadies, yen gains

2 July, 2020 12:00 AM printer

LONDON: Currency traders were broadly cautious in early London trading on Wednesday, with the Japanese yen seeing its first session of gains in more than a week, before key European and U.S. economic data.

The dollar rose overnight before erasing gains, ahead of U.S. manufacturing data for June, which is expected to show a rebound in activity. The dollar was up around 0.2 percent on the day at 97.407 against a basket of currencies at 0732 GMT =USD, report agencies.

“Even if surprising on the upside, markets are likely to take the forward-looking indicator with caution given the rising Covid-19 cases in the US,” ING wrote strategists in a note to clients.

European economic data was also in focus, with eurozone manufacturing PMI due at 0800 GMT, and German unemployment data at 0755 GMT.