U.S. came under mounting pressure in July, as it struggled to control the corona-virus outbreak situation, amid a situation of growing domestic turmoil, expiring stimulus benefits, falling yields, and rising political tensions with multiple countries. To add on to the woes, the unpredictable US President Donald Trump recently suggested to delay the 2020 Presidential Election, a move that is against the Constitution, which has raised concerns that there may be a possibility that he may seek to delegitimize the upcoming election. Yet, the oversold USD rebounded on Friday right before July draws to a close, and analysts took that as a sign of a significant recovery for August.
Across the Atlantic, EUR rallied on the back of the landmark approval of a EUR750 billion EU’s recovery fund. This deal is widely expected to help avert a corona-virus recession and shield the Eurozone economy from weakening further, bringing renewed market confidence and optimism that the Europe will recover faster than U.S. in the coming months.