USD Overview (30 July 2020)

Yesterday, USD weakened against all major currencies.

During the monetary policy meeting yesterday, the Fed held interest rates unchanged at the range of 0-0.25% and no new measures were carried out. The central bank announced an extension of its temporary U.S. dollar liquidity swap lines and the temporary repurchase agreement facility through 31 March 2021. The central bank also reiterated its commitment to using its full range of tools to support the U.S. economy in achieving maximum employment and price stability.

The Pending Home Sales m/m data (Actual: 16.6%, Forecast: 15.6%, Previous: 44.3%) released yesterday indicated an increase in pending home sales transactions for June, likely due to consumers taking advantage of record-low mortgage rates as a result of the Fed’s maximum liquidity monetary policy .

The Advance GDP q/q data (Forecast: -34.5%, Previous: -5.0% revised from -4.8%) will be released later at 2030 ( SGT ).