(31 JULY 2020)DAILY MARKET BRIEF 2:USD extends sell-off.

(31 JULY 2020)DAILY MARKET BRIEF 2:USD extends sell-off.

31 July 2020, 09:24
Jiming Huang
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But the EURUSD extended gains to 1.19 and the GBPUSD surged to 1.3142 on the back of a further USD sell-off.

The euro and sterling’s stretched rally should not be misunderstood, however, as the severe debasement in the greenback is responsible for most of the recent gains. Any improvement in USD appetite could trigger a sharp downside correction in both pairs.

Likewise, the USDJPY and the USDCHF point at oversold market conditions.

By Ipek Ozkardeskaya

Gold remains bid above the $1950 per oz, supported by, an uncertain risk appetite, cheap US dollar, low sovereign yields and rising inflation worries.

WTI crude shortly slipped below $40 per barrel on the back of a record slump in global growth and concerns that OPEC may be scaling back its production cuts prematurely. Weak economic data and gloomy growth prospects provide a stronger case for a sustained slide below the $40 pb.

By Ipek Ozkardeskaya


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