The Dollar weakened across the board last week, slumping 1.1% in trade-weighted terms to its weakest level since 8th June with few US macro data to anchor the currency.
The Euro’s gains extended by a further 0.7% after the European Union agreed on 21st July to a €750bn Recovery Fund to be split between €390bn in grants and €360bn in low-interest loans, with the EU to raise the money from financial markets. In trade-weighted terms the Euro is now trading at its strongest level in years.
Sterling managed to post a similar gain, helped on Friday by better-than-expected June retail sales figures. Reports that the UK and EU may fail to sign a trade deal by September only temporarily held back Sterling.
The Australian Dollar was seemingly unencumbered by the release on 22nd July of weaker-than-expected June retail sales figures (+2.4% mom vs 7.1% mom expected), with the currency gaining almost 1% last week. However, the Kiwi Dollar underperformed with its 0.5% appreciation effectively only reversing the previous week’s loss.
