Tuesday 28th July 2020

Gold has reached a record high, whilst the US dollar continues to slide. NAB’s Ray Attrill says it partially reflects the expectation that the Fed will reinforce its commitment to not raise interest rates until inflation is back up over 2 percent, which will be year away. The weaker US dollar has seen the Euro reach US$1.178, the highest its been since 2018 (on a trade weighted basis, the highest since 2014). Phil Dobbie asks whether this suggests a long overdue correction in the relationship between the Dollar and the Euro. Locally, weekly job numbers will be important, although they predate the full force of the lockdown in Victoria.