XE Market Analysis: Europe – Jul 24, 2020

Comments are off

The yen has outperformed today as risk aversion took a firm grip on global markets. The dollar has so far failed to pick up safe haven demand, and has remained on a softening path. The narrow trade-weighted USD index (DXY) carved out a fresh 22-month low at 94.57. The dollar has lost appeal partly on the advent of the EU’s recovery fund, seen as a milestone by many analysts that has served to tip the balance out of the dollar’s favour, and partly amid expectations for dovish guidance from the Fed at next week’s FOMC, with some speculating that the U.S.