The dollar rose to its best level in a month, ECB meeting tomorrow
Laurence Hayward | July 24, 2019
The dollar climbed to its highest level in a month. The markets are focused on tomorrow’s ECB meeting. Boris Johnson will be the new UK Prime Minister succeeding Theresa May. Her final time in front of Parliament will be tomorrow after which she will hand her resignation to the Queen.
July 24, 2019
EUR/USD 1.1147 GBP/USD 1.2489 USD/CAD 1.3138 AUD/USD 0.6985 USD/JPY 108.04 USD/CNH 6.8764 USD/ILS 3.5245 USD/MXN 19.1010 USD/CHF 1.0975 USD/INR 68.98
The dollar’s slow strengthening continues. There seems to be some progress in the trade talks with China. Larry Kudlow expects China to buy US agricultural products soon. Bloomberg said Robert Lighthizer will meet Chinese officials in Shanghai next week. Markets are focused on the interest rate cut that is expected at the end of the month’s Fed meeting.GBP
With Boris Johnson as the new Prime Minister, a number of cabinet resignations are expected resulting in a cabinet reshuffle. The focus will return to Brexit after the new cabinet is in place. Boris Johnson was one of the prime Brexiteers, so the odds of a hard exit have risen. The pound has strengthened today.EUR
The euro has continued to weaken ahead of the European Central Bank meeting on Thursday. The prospect of more monetary stimulus is on the table - one or more 25 basis point cuts are expected this year. Today’s PMI data disappointed and the euro slid within sight of the support at 1.1100.CAD
The Canadian dollar has weakened against the USD for a fourth day despite oil prices rising.ASIA/PACIFIC
Equities in Asia are higher as trade tensions with the US abate. The yen is weakening under pressure from rising oil prices.