XE Market Analysis: Europe – Jul 16, 2020

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The dollar has recovered most of yesterday’s losses. The narrow trade-weighted index lifted to a peak of 96.17, up from Wednesday’s five-week low at 95.78. The rotation higher in the U.S. currency was driven by a bout of risk aversion in global stock markets, which raised safe-haven demand for dollars. News that the Trump administration is considering a ban on members of the Chinese Communist Party and their families from entering the U.S., which would mark a significant further deterioration in U.S.-Sino relations, sparked risk-off positioning in global markets.