Strength is in the Euro. Overview for 23.07.2020

After updating the high of October 16th, 2018 yesterday, the major currency pair intends to keep its positive momentum. 

EURUSD is as fresh as paint and might as well continue rising. The current quote for the instrument is 1.1585.

The high of October 16th, 2018, 1.1602, was updated last night. The key catalyst that helps the Euro to get so much stronger remains the same – a well-coordinated work of the European Union to agree on the stability funds to help the Area’s economy to recover. The sum of €750B is so huge, that all arguments against collapse. It’s the fundamental factor, supported by which the Euro may continue strengthening for a long time.  

In this light, market players prefer to treat escalation of the US-Chinese conflict as though it doesn’t exist but they perfectly understand that it’s temporary. 

Last night, the Ministry of Foreign Affairs of the People's Republic of China announced that on July 21st, the USA issued an order to close the Chinese consular post in Houston. How can it be perceived? Like another step towards deterioration in ГЫ-Chinese relations, nothing else. The conflict escalates, and it’s not only about the spread of the COVID-19.

In the afternoon, investors should pay attention to the Consumer Confidence in the Euro Area, which may improve up to -12 points in July after being -15 points the month before. In the evening, the USA is going to report on the CB Leading Index in June but it’s unlikely to be interesting.