Dollar strengthening continues, Boris Johnson elected as new Prime Minister
Laurence Hayward " | July 23, 2019
The markets are focused on the ECB meeting on Thursday. In the UK, Boris Johnson was just announced as the selection for the new Conservative British Prime Minister, bringing Brexit back into focus. Trump said Johnson will be a “great” leader. The IMF cut the World Growth forecast to 3.2% from 3.3%, citing trade tensions.
July 23, 2019
EUR/USD 1.1163 GBP/USD 1.2438 USD/CAD 1.3158 AUD/USD 0.7012 USD/JPY 108.19 USD/CNH 6.8842 USD/ILS 3.5357 USD/MXN 19.1295 USD/CHF 0.9838 USD/INR 68.94
The dollar’s slow strengthening continues. Yesterday, President Trump announced an agreement to suspend the debt ceiling and boost spending limits for the next two years. The bill is subject approval before the summer recess that starts at the end of this week. There was no new news on trade talks with China.GBP
With Boris Johnson as the new Prime Minister, a number of cabinet resignations are expected. Markets will refocus on Brexit after the new cabinet has fallen into place. The pound has shown little reaction to the news.EUR
The European Central Bank will meet on Thursday. The prospect of more monetary stimulus is on the table. One or more 25 basis point cuts are expected this year. The euro has lost about half a cent against the dollar in the last day.CAD
The Canadian dollar has also weakened against the USD as oil prices fell.ASIA/PACIFIC
Equities in Asia are a little higher. Both the Japanese Nikkei and the Shanghai Composite rose.