EUR climbs to highest level in 4 months
Progress on the development of a coronavirus vaccine caused a shift in risk sentiment for the markets. The US dollar index weakened the most in a week and the EUR traded to levels not seen since March 10.
July 15, 2020
EUR/USD 1.1447 GBP/USD 1.2646 USD/CAD 1.3563 AUD/USD 0.7035 USD/JPY 106.73 USD/CNH 6.9819 USD/ILS 3.4274 USD/MXN 22.2635 USD/CHF 0.9412 USD/INR 75.1475
USDInvestors move to risk-on trading following positive news from US corporate earnings and optimism for a coronavirus vaccine. The US dollar fell on risk-on trading and following comments from Federal Reserve Governor Lael Brainard stating the Fed should pivot to provide longer-run accommodation.GBPSterling strengthened on broad market sentiment trading 0.5% higher and above the 1.26 level. The currency had weakened earlier in the trading session following disappointing data out of the UK.EUREUR/USD hit a 4-month high of 1.1448 in response to markets' risk-on appetite. The currency pair has a next level of resistance at 1.1422 - the high traded on June 10.CADThe loonie strengthened vs. the US dollar as appetite for riskier assets increased. Bank of Canada will meet today at 10am EST where the expectation is for the central bank to keep rates as is.ASIA/PACIFICDespite risk-on sentiment, the Japanese yen advanced against the US dollar after a report from Japan Governor Haruhhiko Kuroda emphasized the importance of yield curve control and stated Japanese banks don’t have a dollar-funding problem.
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