Confidence shifts toward Euro stimulus
Monday 20 July, 2020
Daily Currency UpdateUSD - United States DollarThe US dollar opened lower against its major trading partners on Monday, and the Euro reached a three-month high.Demand for the US dollar has dropped with greater confidence in the Euro Zone's recovery efforts. The Euro rose to just under a four-month high against the US dollar, with negotiations well underway between European Union leaders on a recovery fund that would hopefully bring the bloc out of its current recession. All 27 EU leaders concluded day 4 of the European Union Economic Recovery meeting. They hoped to put together the 2021-27 budget, which is proposed to be above 1 trillion euro, including a linked new recovery fund worth 750 billion euro to help rebuild southern economies most affected by the pandemic. This news has pushed the EUR/USD into the mid 1.14 handle.
Key MoversThe GBP dropped 0.75% on Friday and it is in a downtrend against most currencies, including against the Euro. This week marks the fifth week of the most recent Brexit negotiations between the UK and EU.Tensions between the UK and China have continued at the start of this week, with the UK poised to suspend its extradition treaty with Hong Kong in response to China's new security laws. Dominic Raab is expected to announce the suspension in Parliament today.The Australian dollar finished another week with solid gains. It is trading at 0.7007 at the moment. The pair has been comfortably consolidating above the 0.6900 level since July.
- USD/CAD: 1.352 - 1.359 ▼
- GBP/USD: 1.251 - 1.265 ▼
- EUR/USD: 1.141 - 1.146 ▲
- USD/AUD: 1.425 - 1.433 ▼