Forex Today: Optimism smashes the dollar

Here is what you need to know on Tuesday, July 7:

The American dollar was the worst performer at the beginning of the week, undermined by risk-appetite. Chinese stocks led the way higher, amid local authorities pushing a bullish market, optimistic about an economic comeback.  US services output beat the market’s expectations, further fueling the appetite for risk.

The EUR/USD pair hit a fresh multi-week high of 1.1345, unable to extend gains but holding above the 1.1300 level at the end of the day. The Pound, on the other hand, was a lager, ending the day unchanged against the greenback just below the 1.2500 figure.

U’s chief negotiator Michel Barnier arrived in London for another round of face-to-face talks. No progress has been reported, and the market has little hopes on the matter being solved soon.

US Treasury yields run on the back of upbeat services data, but trimmed gains ahead of the close, ending the day flat.

The number of new coronavirus cases in the US seems to be decreasing. The country may well be passing the peak. Not yet confirmed, it may result in further dollar’s weakness and Wall Street reaching new all-time highs.  

Gold prices neared their recent multi-year highs, ending the day at $ 1,786 a troy ounce, while crude oil prices maintained the status-quo, with WTI settling around $40.00 a barrel.

The Australian dollar was among the best performers, trading a few pips below the 0.7000 ahead of the RBA monetary policy meeting.

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