USD finds support amid trade deal hopes – BBH
USD bounces after a string of losses, the MSCI All Country World Index surged to a record high, and global bond yields are drifting higher, BBH's FX analysts report.
Global stocks hit record as tariff talks advance
"Trade deal optimism has turbocharged risk assets. Yesterday, the media reported the US was closing in on an agreement with the EU that would set a 15% tariff for most products. This would be down from the threatened 30% levy if both sides fail to reach an agreement by August 1."
"USD can find additional near-term support if the US July S&P Global PMI points to faster private sector growth momentum (9:45am New York, 2:45pm London). The composite PMI is projected at 52.8 vs. 52.9 in June, services is expected at 53.0 vs. 52.9 in June, and manufacturing is seen at 52.7 vs. 52.9 in June. Nonetheless, the year-to-date USD downtrend is intact in our view."
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FXStreet Insights Team
FXStreet
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