Forex Today: Markets torn between coronavirus surge and cure hopes, EU nears a deal, gold holding up
Here is what you need to know on Monday, July 20:
The market mood is mixed as a new week begins as coronavirus cases continue rising in the US while hopes for a COVID-19 vaccine remain high. Hopes for a breakthrough in the EU Summit are keeping the euro bid.
US coronavirus: COVID-19 cases have topped 3.7 million and deaths surpassed 140,000. Los Angeles is reportedly to announce a lockdown and cases in Florida are described as "out of control." New figures are set to move markets later in the day, but the chances of new records are lower due to the "weekend effect."
Coronavirus vaccine? The Lancet is set to publish details on a COVID-19 immunization trial held by AstraZeneca and Oxford University. The Russian elite has reportedly been administered an experimental vaccine.
President Donald Trump continued dismissing the issue, saying most cases are asymptomatic and only the "sniffles." His handling or lack thereof of coronavirus is weighing on his standing in the polls. Trump trails rival Biden by around 9% and the Economist's model given him only an 8% chance of being reelected.
The President will reportedly meet Republican leaders later on Monday to discuss the next steps of fiscal stimulus. Some of the emergency assistance such as unemployment benefits expires at the end of the month.
EU Summit: Headlines coming out of the fourth day of leaders' talks in Brussels are suggesting that the Netherlands and the other "frugal" countries" are willing to accept €390 billion in grants, down from €500 billion originally suggested. Germany and France reportedly considered walking away. EUR/USD has risen back toward 1.1450 in hopes of a breakthrough.
Gold has stabilized above $1,800 after dipping below the round level last week. Citi says prices may top $2,000 amid loose monetary policy and growing demand for the precious metal.
Brexit negotiations are resuming in the shadow of the EU Summit with low expectations for progress. The EU says its concession by the UK offers have not been reciprocated while London says Brussels' suggestions do not go far enough.
The UK is set to cancel its extradition treaty with Hong Kong, following China's tighter grip over the city-state, angering Beijing. The Chinese ambassador to the UK said thee could be retaliation and hinted at his country's investments in Britain. GBP/USD is moderately lower, under 1.2550.
AUD/USD is struggling under 0.70 as efforts to suppress the spread of coronavirus seem to have stalled and new restrictions are on the cards.
WTI Oil is stable above $40. Cryptocurrencies are edging lower, with Bitcoin dipping under $9,200.
More Central banks make way for governments to act and move markets, but there is only one real boss