Here is what you need to know on Tuesday, July 21:
Markets are moderately higher after a positive day on Monday, encouraged by EU leaders' agreement on a recovery fund and no new records in US coronavirus cases. President Donald Trump returns to the stump and several economic figures are of interest.
Deal: After nearly five days of deliberations, EU leaders agreed on a €750 billion deal including €390 billion in grants – the latter being a compromise. Late-night talks also yielded an accord on a seven-year budget. EUR/USD retreated from the highs in a "buy the rumor, sell the fact."
While the group of "Frugal Four" lowered the sums awarded directly, they opened the door to mutually funding direct transfers to countries – closer integration.
See EU Deal Analysis: EUR/USD buy opportunity? Why the move is historic and should keep the euro bid
Gold is trading just above $1,818, just under the near seven-year high of $1,820.40. Bullish forecasts by Citibank and monetary stimulus are attributed to the rise in the precious metal. Silver prices have also been on the rise.
Daily US coronavirus cases rose by around 60,000 and deaths increased by around 500, off the highs peaks, as is usual for reports coming out on Mondays. Administrative bottlenecks over the weekend delay reports. Nevertheless, the hopes that southern states are experiencing some kind of flattering have encouraged investors.
President Donald Trump is stepping up his game, tweeting a picture of himself with a face mask, and announcing he will begin holding daily briefings on the disease. New reports from various states are of interest.
Coronavirus vaccine: CanSinoBIO, a Chinese firm, announced that its immunization candidate has proved safe in early trials and that it induced positive responses. The news joins an upbeat publication in the Lancet, which reported that the AstraZeneca/Oxford University project triggered "double protection" of both antibodies and T-cells in its Phase 1/2 test.
Other efforts making progress are led by Moderna and BioNTech/Pfizer. Experts hope that the mass administering of a COVID-19 vaccine may happen in mid-2021.
GBP/USD has been recovering and trades close to 1.27. Sterling is shining despite a lack of progress in Brexit talks. UK Public Sector Net Borrowing rose by over £34 billion in June, more than expected. A report on Russian meddling in UK politics is due out later in the day.
AUD/USD is trading above 0.70, underpinned by the upbeat market mood. Phillip Lowe, Governor of the Reserve Bank of Australia, said that the Australian dollar is broadly in line with fundamentals. The RBA's meeting minutes reiterated that loose monetary policy is due as long as necessary.
USD/CAD is trading around 1.35, extending its decline. Canadian retail sales figures for May are set to show a bounce after a 22% crash in April.
WTI Oil has risen above $41 after dipping below $40 on Monday. Uncertainty about the global economy has failed to trigger high volatility.
Cryptocurrencies are stable, with Bitcoin holding around $9,200.
More Central banks make way for governments to act and move markets, but there is only one real boss
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