Markets rise on the back of virus news

July 21, 2020

A positive start to the week for markets, with news surrounding a possible coronavirus vaccine bringing a sense of optimism.

The EURUSD began the week at $1.14096 and climbed in early trading, hitting highs of $1.14671 mid-session. The following few hours saw the euro fall to lows of $1.14015. It rebounded off those lows and regained most of its earlier losses late in the day. It is now trading at $1.14559. The GBPUSD performed strongly after opening at $1.25486. The pound fell to lows of $1.25172 early before bouncing back and rallying over the rest of the day, peaking at $1.26653 late. It has gone higher again in Tuesday trading and is now sitting at $1.26729.

News of positive coronavirus testing results buoyed markets on Monday. The Dow started the week 26,668.72 and endured a large sell-off early, eventually hitting a low of 26,441.26 mid-session. It climbed off those lows and erased its earlier losses, hitting a high of 26,766.42 late in the day. It has come away from those highs and is now trading at 26,728.50. The Dax began the week at 12,964.60 and declined to lows of 12,802.96 mid-session. The German index surged off those lows, ultimately hitting a high of 13,096.21 in the final hour of trade. It is slightly higher at the moment and is now trading at 13,115.92.

Data published today includes:

China – CB Leading Index

Europe – Swiss Trade Balance

NZ – Credit Card Spending

UK – Public Sector Net Borrowing

Australia – CB Leading Index, RBA Governor Philip Lowe speaks

 

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