Safe-haven yen and Swiss franc strengthen as equities weaken in front of tomorrow's Fed announcement
The dollar is stronger in morning trading along with other safe-haven currencies as FX markets await results of tomorrow’s regularly scheduled Fed meeting and press conference. The euro paused around 1.1730 after raising 4% this month and the British pound is trading near 4-month highs vs. the greenback.
July 28, 2020
EUR/USD 1.1726 GBP/USD 1.2891 USD/CAD 1.3383 AUD/USD 0.7148 USD/JPY 105.1500 USD/CNH 7.0016 USD/ILS 3.4147 USD/MXN 22.0190 USD/CHF 0.9166 USD/INR 74.8387
The dollar is stronger this morning as safe-haven currencies are all up mostly on profit taking. The Federal Reserve meets today and tomorrow with the announcement/press conference starting at 2:00pm Eastern. Goldman Sachs published a note highlighting the possibility of the US dollar losing some status as the world's reserve currency and sees gold increasing in value.GBP
The British pound pulled back from a 4-month high after gaining for 7 trading sessions in a row. FX traders took profits and may await tomorrow’s Federal Reserve meeting in the US before resuming dollar-selling.EUR
The euro is trading at the highest levels since September 2018 and has risen 4% vs. the US dollar this month. Momentum from the EUR750B stimulus package caused many FX traders to become longer-term bulls on the common currency.CAD
The Canadian dollar weakened due to overall risk-off sentiment. The price of oil is flat this morning.ASIA/PACIFIC
Concerns of geopolitical risk kept the Chinese renminbi at 7.00 as FX traders see better opportunity in safe-have currencies.
The Australian dollar swung to a loss after the price of gold hit $2,000/oz and then quickly lost $50/oz. However, the A-dollar is trading close to the highs of mid-2019.
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