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Here is what you need to know on Tuesday, July 7:

Markets have stabilized and the US dollar is attempting recovery after a risk-on Monday, fueled by China’s stock market surge and lower US coronavirus concerns. A mix of figures and COVID-19 statistics are set to rock markets.

Risk-on Monday: Chinese state media touted a “bullish stock market” triggering a rally and a surge in searches for opening equity accounts. Alongside upbeat figures from the world’s second-largest economy, optimism sent global stocks higher and the safe-haven dollar lower.

Gold has been able to advance despite the risk-on mood and has consolidated above $1,780. It may be well-positioned to continue higher. 

US coronavirus figures for the Sunday were relatively low – the well-known “weekend effect” but investors ignored it and sent shares higher for the fifth consecutive day. The daily number of new infections dipped below 50,000 and deaths slipped under 300. 

Anthony Fauci, America’s leading epidemiologist, warned that the US is still “knee-deep” in the first wave and that the situation is “not good.” New statistics due out from Florida, California, and Texas are eyed. 

The US ISM Non-Manufacturing Purchasing Managers’ Index shot higher to 57.1, smashing expectations and reflecting optimism in the services sector as of early June. Most components leaped but the employment one remained below 50, reflecting contraction. The JOLTs job openings figures for May are due out on Tuesday. Despite the late publication, the Federal Reserve is eyeing the data.

Raphael Bostic, President of the Atlanta branch of the Federal Reserve, told the FT that the US recovery may be “leveling off.” His colleague Randal Quarles will speak later on Tuesday. 

Melbourne has been put under a strict six-week lockdown, weighing on the Australian dollar. AUD/USD is retreating from the 0.70 mark. The Reserve Bank of Australia left interest rates unchanged at 0.25% as expected and did not release any hints about future policy. 

GBP/USD is holding above 1.25 ahead of a public appearance by Rishi Sunak, Chancellor of the Exchequer. He will speak with MPs ahead of unveiling new stimulus. Details of green investment have been unfavorable in comparison to several European countries’ parallel plans. Brexit talks continue. 

EUR/USD is trading above 1.13 after reaching the highest in nearly two weeks. The focus remains on the ambitious EU recovery fund, which has yet to be approved. 

USD/JPY is steady above 107 as cases in Tokyo continue climbing but the government is not considering new steps. 

Brazil’s president Jair Bolsonaro has been taken to a lung examination after reportedly suffering from fever and was seen wearing a face cover. Bolsonaro previously dismissed COVID-19. USD/BRL is trading above 5.30. 

Coronavirus deaths surpassed the 20,000 mark India and cases stand above 700,000. USD/INR is edging up toward 75. 

Cryptocurrencies moved up on Monday, with Bitcoin trading above $9,200. 

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