XE Market Analysis: North America – Jul 16, 2020

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The dollar rallied to a two-day high in narrow trade-weighted terms, with the DXY index pegging a high at 96.32, extending the rebound from yesterday’s five-week low at 95.78. The rotation higher in the U.S. currency has been 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.