XE Market Analysis: North America – Jul 01, 2019

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The Dollar has rotated higher amid a strong post-G20 risk-back-on theme, interpreted by markets as meaning that the Fed is less likely to cut rates aggressively. Many market narratives promoted the view that the latest truce in the U.S.-Chain trade war will at the least kill off any lingering idea that the Fed may cut rates by as much as 50 bp in July. The return to the negotiating table of the world’s two biggest economies was tonic for global stock markets, more than than offsetting weak PMI manufacturing data out of both Asia and Europe.