XE Market Analysis: North America – Jul 30, 2020

The dollar has managed a rebound from post-Fed lows, with the narrow trade-weighted USD index lifting above 93.50 after pinning a fresh 25-month low at 93.18. Speculative participants had built up a large net short dollar position going in to the FOMC, and a consequential profit taking motive has helped fuel the dollar’s bounce after Fed Chairman Powell’s expectedly signalled a continued commitment to ultra-accommodative policy. Stock markets sagged in Europe as focus shifted to a flood of incoming corporate earnings reports and political wrangling in the U.S.