FX Daily Update – US Session 15th July 2020
- Asian equity bourses posted gains following upbeat performances from Wall street equities
- The Moderna vaccine has been shown to produce antibodies in an initial study for testing subjects. Sparking fresh optimism and encouraging the risk on mood.
- US President Trump has signed a legislation to hold China accountable for actions in Hong Kong surrounding the new security laws
- The Bank of Japan has kept interest cash rates the same in line with market expectations at -0.1%
Noticeable FX Movements
The dollar Index (DXY) slipped initially below the 94.40 support level and fell sharply lower , currently trading at 93.90.
EUR/USD continues pushing ahead, reaching towards that 1.15 level. Do bear in mind that we have the all important ECB recovery fund meeting, to which we don’t think there will be a positive outcome. The Euro has not taken this into account.
ASX 200 was up +1.7% and Nikkei 225 up +1.5% with a advances in Australian tech sector stocks , pushing the index above the 6000 level. Interestingly the Japanese benchmark posted similar gains despite the current concerns around a surge in covid-19 cases in Tokyo which has resulting in the city upgrading its covid-19 alert status.
Chinese markets disappointing with the Hang Seng (-0.5%) and Shanghai Comp. (-1.4%) both negative following US President Trump signing a legislation to hold China accountable for actions in Hong Kong centred around the new security law.
- California coronavirus cases increased to a record high of 10,707 with the death toll rose by 137, whilst Texas coronavirus cases increased by 10,677 and deaths rose by a record 133
- The Moderna vaccine produced antibodies in all tested patients tested in initial study. The vaccine trial produced robust immune response for all 45 patients in early stage human trial and the findings are said to provide more promising data that the vaccine could give some protection against the coronavirus