US Dollar is mixed, but trending overall higher
Laurence Hayward " | July 22, 2019
The dollar is slightly stronger due to safe haven status and optimistic actions surrounding US-China trade relations. The markets are focused on the ECB meeting on Thursday and the selection of the new British Prime Minister on Tuesday.
Monday: US Chicago Fed National Activity Index
Tuesday: UK Confederation of British Industry data, FHFA House Price Index, Richmond Fed Manufacturing Index, EU Consumer Confidence, US Existing Home Sales
Wednesday: Australian July Preliminary PMI, Japan May Final Coincident and Leading Indexes, German and EU PMI data, US PMI data, New Home Sales
Thursday: German IFO Business Climate, Expectations and Current Assessment, ECB meeting and interest rate statement, US June Preliminary Wholesale Inventories and Durable Goods, Initial and Continuing Claims
Friday: Advanced US Q2 GDP PMI, Existing Home Sales
July 22, 2019
EUR/USD 1.1222 GBP/USD 1.2486 USD/CAD 1.3086 AUD/USD 0.7052 USD/JPY 107.84 USD/CNH 6.8799 USD/ILS 3.5280 USD/MXN 19.0503 USD/CHF 0.9811 USD/INR 68.92
The dollar strengthened on Friday to end the week higher against the pound and held steady inside the week's range against the euro. The volatile situation with Iran helped the US dollar strengthen as a safe haven currency. On the trade front, China made some positive moves to get the talks restarted. Chinese companies asked US exporters about buying agricultural products and applied for exemptions from the retaliatory tariffs, according to the Xinhua News Agency. An interest cut of 25 basis points is expected at the FOMC meeting at the end of the month.GBP
The vote to select the new Prime Minister will happen on Tuesday. Boris Johnson is the favorite to take the position. If he should win a number of cabinet resignations are expected. The pound is slightly weaker since its UK opening.EUR
The European Central Bank will meet on Thursday, and the prospect of more monetary stimulus is on the table with one or more 25 basis point cuts expected this year. The euro is trading at the bottom end of its July range.CAD
The Canadian dollar looks softer this morning despite a spike in oil prices due to tensions in the Strait of Hormuz.ASIA/PACIFIC
The Chinese newspaper Xinhua reported that local firms are looking to buy US farm products. Asian equities followed the DOW’s move lower on Friday.
In Hong Kong, riots continued over the weekend.