No love for the Greenback this week as U.S. economic data was arguably net negative, coronavirus cases continued to rise, and the next highly needed U.S. stimulus deal remained uncertain.

, USD Weekly Review (July 20 – 24)
Overlay of USD Pairs: 1-Hour Forex Chart
, USD Weekly Review (July 20 – 24)
USD Weekly Performance from MarketMilk

United States Headlines and Economic data

Monday:

No major U.S. updates but we saw USD weakness on Monday, likely due to positive global risk sentiment. Traders were starting the week on good vibes, likely on a mix of stories including optimism of a EU Recovery fund deal, and another positive COVID-19 vaccine update, this time from the joint project between Oxford and AstraZeneca.

Tuesday:

Don’t expect new coronavirus relief bill until August, top House Republican says

The Chicago Fed National Activity Index (CFNAI) was +4.11 in June, up from +3.50 in May.

Trump shifts rhetoric as he urges mask-wearing, warns of worsening pandemic

Dollar weakness accelerated on Tuesday on more positive global risk sentiment vibes, especially after the EU finally gets a deal done on the recovery fund and on positive expectations the U.S. will also get a new stimulus package soon. We also saw more evidence that COVID-19 cases growth is accelerating in the U.S. (California COVID-19 cases top 400,000, soon to overtake New York as worst-hit stateNation’s Deaths Pass 140,000)

Wednesday:

U.S. Mortgage applications increased 4.1% from one week earlier

U.S. Existing home sales surge nearly 21% in June – the highest monthly gain on record

Despite positive housing data during the U.S. session, USD weakness continued, possibly with additional help for the bears from rising tensions between the U.S. and China (U.S. charges two Chinese nationals in coronavirus vaccine hacking schemeU.S. gives China 72 hours to shut Houston consulate)

Thursday:

U.S. weekly jobless claims total 1.416 million, vs 1.3 million expected

Mnuchin says GOP plan for unemployment extension will be based on ’70% wage replacement’

The Conference Board Leading Economic Index for the U.S.: +2.0% in June to 102.0, following a 3.2% increase in May and a 6.3% decrease in April.

A small bounce for the Greenback on Thursday as broad risk sentiment shifted negative after the U.S. weekly jobs update, but it was short-lived as traders likely continued pricing in the massive Federal Reserve stimulus measures, uncertainty with the next U.S. stimulus package and more political tensions between the U.S. and China.

Friday:

U.S. Mortgage rates just hit another record low, 30-year fixed just fell to another record low at 2.87%

U.S. private sector output stabilizes in July but demand falters

New U.S. home sales surge in June to strongest rate in 13 years

Calls for shutdown are now rising the U.S. saw 1,000 deaths/day for four days in a row. 

No end of week recovery for USD on Friday despite improving U.S. economic data and broad risk-off sentiment from Thursday flowing into Friday.



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