European session review: USD mixed amid concerns about potential second wave of COVID-19 infections

USD treaded mixed against its major rivals in the European session on Monday amid concerns about the second wave of coronavirus infections that could hold back the recovery of the global economy. The U.S. currency rose against AUD and CAD, fell against GBP, CHF, and changed little against EUR, JPY and NZD.

China reintroduced strict lockdown measures in some areas after Beijing reported an outbreak of new infections. In the United States, a large number of states, which are in the reopening process, including Texas, California, Florida, North Carolina, etc., are reporting a rise in daily new coronavirus cases in recent days. Increasing coronavirus infections raised fears of a possible second wave of COVID-19 and the threat of further disruption to global growth.

Worse-than-expected China's data also weighed on investor sentiment, suggesting that the country's economy is struggling to get back on track after containing the coronavirus. The National Bureau of Statistics (NBS) reported that China's industrial production increased 4.4 percent y/y in May after a 3.9 percent y/y gain in April. Economists had forecast a 5.0 percent y/y rise. At the same time, the country's retail sales dropped 2.8 percent y/y in May, following a 7.5 percent y/y decline in April. Economists had expected a fall of 2.0 percent y/y.