July market update – the US dollar was notably weaker over July

Chief Investment Officer Chris Godding and Senior Research Analyst Louie French give their commentary on what happened in the markets over the month of July 2020.

Published on 10 Aug 20201 minute read

Written by Chris Godding

Movements in global markets during July largely reflected the fine balance between concerns over Covid-19 outbreaks and the pickup in economic activity in countries that were already emerging from lockdown measures.

In this edition

Against this backdrop, the US dollar was notably weak over the month – with the greenback spot index dropping the most in a single month since September 2010 – as second quarter GDP data set an unwanted record for the size of the economic contraction and US policymakers failed to reach an agreement on a fiscal response
The weaker dollar supported a number of market returns in July, including Asian, Emerging Markets and US equities, alongside another strong month for precious metals prices
Returns in sterling terms were more subdued

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