Wednesday 15th July 2020

The US dollar fell again today, driven by a rise in the Euro. NAB’s Tapas Strickland says the Euro’s rise is based on hopes that European leaders will reach a consensus on their rescue package this week. The Aussie dollar remains resilient, even as jobs growth stalled and there are fears that Victoria will enter a stage four lockdown. In the US banks are preparing for loan defaults, whilst the Fed’s Lael Brainard has said the central bank will “run the economy hot” until recovery is well underway, whilst warning of a second wave. Meanwhile, as the UK pulls Huawei out of its 5G networks, China is showing signs of conforming to the phase one trade deal. Perhaps they want to show they have complied in the hope that someone else will be in the White House next year.