Earnings Season Drives Currency Markets
Foreign exchange rates are looking relatively stable this morning, with modest price action largely dictated by events in stock markets. Equity futures are down – putting some pressure on risk-sensitive currency pairs and raising the dollar’s safe-haven value – after Tesla, LVMH and Deutsche Bank reported disappointing earnings. Treasury yields are inching lower, but remain elevated on the back end as investors brace for continued fiscal expansion under either of the current front-runners for US president. The euro is trading near a two-week low after private sector activity decelerated more than expected in early July, suggesting that an early-year economic...