The heads of state of the European Union did not reach an agreement on the formation of a seven-year budget plan for 2021-2027 and a fund for economic recovery after the coronavirus pandemic. As a result, the trading session on Monday July 20 will open with a characteristic gap towards the dollar.
As a result of the adoption of sanctions by the US Congress against Chinese IT companies, the US currency will continue to grow.
Possible factors that could weaken major currencies are the return of quarantine to the United States and the proximity of the Fed meeting. The Treasury does not plan to expand market incentives and will keep the rate. The pause in liquidity will strengthen the dollar and attract investors to buy amid the threat of a second wave of the coronavirus pandemic.