Currency Outlook

JULY 2020 – IN BRIEF

What Happened

  • The mighty buck has fallen for three consecutive months per the Bloomberg Dollar Spot Index
  • COVID-19 remains a threat to economic well-being as more infections force further inactivity
  • Euro advancement continued in June despite hesitation from member nations and delay to pass a major aid package worth €750BN
  • MXN was the worst-performing currency following interest rate cuts and easing
  • AUD, NZD, KRW, and other Pacific Rim tender improved most based on the perceived successful management of the contagion and ties to a revived China

 

Tempus’ View

  • Future blurrier with growing concerns about the virus and its immediate damage
  • U.S. Dollar will continue losing ground as doubts over containment remain
  • Euro still has room to grow if fiscal interdependence is accomplished via the passing of the rescue plan
  • Sterling could start seeing major improvement if Brexit negotiations turn out productive
  • Greenback dominance is being challenged as 2020 reveals fractures in preparedness exacerbating economic woes

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