{"id":173973,"date":"2020-07-22T17:05:34","date_gmt":"2020-07-22T21:05:34","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=173973"},"modified":"2020-07-22T17:05:34","modified_gmt":"2020-07-22T21:05:34","slug":"trump-pandemic-will-get-worse-before-it-gets-better-usd-reacts","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/trump-pandemic-will-get-worse-before-it-gets-better-usd-reacts\/","title":{"rendered":"Trump: Pandemic Will \u201cGet Worse Before It Gets Better\u201d \u2013 USD Reacts"},"content":{"rendered":"
July 22, 2020<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Dollar Struggles Across the Board<\/strong><\/h2>\n

The dollar realized further declines on Tuesday as the index closed 0.58% lower. The coronavirus situation in the US is taking a further toll as cases arise. President Trump stated that the outbreak is likely to worsen.<\/p>\n

Further struggles to reach a consensus on the next round of economic stimulus measures drag on. This weakened the dollar to deeper territories as investors turned to riskier assets.<\/p>\n

Euro Rejuvenated After EU Agreement<\/strong><\/h2>\n

The euro traded at its highest level in more than a year in the morning session, breaking above 1.15. This comes as European leaders struck an agreement for a \u20ac750bn pandemic recovery fund.<\/p>\n

Progress towards a coronavirus vaccine also weighed on the US dollar. This came as European biopharma companies reported encouraging trial results.<\/a><\/p>\n

Pound Bullish But Brexit Uncertainty Looms<\/strong><\/h2>\n

The pound kept its momentum against the weakened US dollar, closing 0.54% higher on Tuesday. GBPUSD recorded highs above the 1.27 handle.<\/p>

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This morning, cable is slightly down against the dollar amid reports of a no-deal Brexit.<\/a> UK ministers have expressed skepticism over the current Brexit negotiations.<\/p>\n

In addition, government officials recently abandoned hopes of reaching a US-UK trade deal by November.<\/p>\n

Asia-Pacific Buoyed Over Weakened Greenback<\/strong><\/h2>\n

Asian stocks ended mixed on Tuesday. While investors praised the EU\u2019s stimulus plan, rising infection numbers dented optimism.<\/p>\n

The yen closed 0.40% over the dollar on Tuesday, indicating a further push towards the safe-haven asset.<\/p>\n

Aussie crossed over 0.71, closing the highest since April last year. The neighboring Kiwi also edged up above 0.66, advancing to its highest level in 2020.<\/p>\n

Mixed Bag for US Stocks<\/strong><\/h2>\n

The S&P increased for a third consecutive day, led by gains in the energy and financial sectors.<\/p>\n

The technology sector lost momentum, however, leading Nasdaq 0.8% lower.<\/p>\n

Investors are awaiting earnings reports from Tesla and Microsoft later today. This could see the index recovering yesterday\u2019s losses.<\/p>\n

Further Breakthrough for the Yellow Metal<\/strong><\/h2>\n

Gold reached another milestone overnight, rising above $1860. This move was urged on by Trump\u2019s comments that the coronavirus will \u2018get worse before it gets better\u2019.<\/p>\n

Furthermore, US officials debate over the renewal of the expiration of the unemployment benefits. The next stimulus bill, however, must be agreed upon before the end of July.<\/p>\n

Crude Traders Eye EIA Following Poor API<\/strong><\/h2>\n

Oil prices rose over $42 in yesterday\u2019s trading. However, crude retracted many of its gains by the end of the day.<\/p>\n

Weak API figures left oil prices on a precarious footing. With investors assessing the impact on demand from the increasing US virus figures, prices could remain mixed for the short-term.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Dollar Struggles Across the Board The dollar realized further declines on Tuesday as the index closed 0.58% lower. The coronavirus situation in the US is taking a further toll as cases arise. President Trump stated that the outbreak is likely to worsen. Further struggles to reach a consensus on the next round of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-173973","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=173973"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173973\/revisions"}],"predecessor-version":[{"id":173976,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173973\/revisions\/173976"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=173973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=173973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=173973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}