XE Market Analysis: Asia – Aug 05, 2020

The DXY fell to within a whisker of the two-year bottom of 92.55 seen on Friday before recovering modestly in afternoon dealings. Risk-on conditions weighed on the greenback generally. Wall Street rallied as reports of a stimulus deal in the works by the end of the week circulated. Treasury yields were higher. For data, the headline July ADP private payroll print was a mile lower than forecasts, though hugely upwardly revised prior months took the sting out of the report. The June trade deficit narrowed nearly as much as expected, while the July services ISM improved more than consensus.