The Euro keeps charging higher as it retains its dominance this week in anticipation that European leaders will manage to make progress with regards to the COVID-19 economic rescue package. The market consensus appears to be of a final agreement in August or September.

The market swiftly transitioned from ‘risk on’ vibes dominating proceedings for most of Monday to an abrupt change of heart, leading to the erosion of gains in the commodity-linked currencies and US equity indices in favor of the Japanese Yen and the US Dollar.

We enter a new week of trading with US equities charging higher following a late rally on Friday, Gold trying to hold above the $1,800.00 mark, the Pound still an out performer in the currency space, while the USD and Yen keep heading in opposite directions.

We’ve gone through a setback in risk sentiment as depicted by the out performance of the Yen and the US Dollar across the board, closely followed by the mighty Pound (judging by this week’s results), while the Aussie, the Euro and the Canadian Dollar were the main laggards as a wave of selling hit the S&P 500 early doors in the US.

What stood out through a Wednesday session vacant of market-moving fundamental news was the continuous fragility of the US Dollar, by far the worst performer, while on the other side of the spectrum, Gold added over 0.8% and convincingly broke $1,800.00.

The main take-away from Tuesday’s price action was an explosion in the price of Gold, hitting its highest level since 2011, alongside the eruption in buy-side flows in the Sterling amid speculation of a revival in Brexit talks, all in the context of a very weak Canadian Dollar and faltering US equities, unable to keep up the momentum but still bullish.