XE Market Analysis: Europe – Jul 01, 2019

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The Dollar has firmed up amid a strong post-G20 risk-on theme ensued, which has been interpreted by markets as meaning that the Fed is less likely to cut rates aggressively, with narratives promoting the view that latest truce in the U.S.-Chain trade war will at the least kill the possibility for the Fed to cut rates by 50 bp at its July FOMC. The USD index (DXY) rallied by nearly 0.5% in making a 10-day high at 96.54. EUR-USD printed a 10-day low at 1.1321, while Cabe and AUD-USD also tracked lower, the latter posting a two-session low at 0.6991.