EURO : One-Month High

(Tue, 20 Oct 2020). Investors flocked to the inaugural SURE bond sale today, demand in excess of 10-times the amount of bonds for sale. The European Union Support to mitigate Unemployment Risks in an Emergency bonds, the EU’s first joint debt scheme, drew demand of over EUR233 billion for the EUR17 billion on bonds on sale. The 10-year attracted EUR145 billion demand for the EUR10 billion on offer, while the 20-year bond drew orders of EUR88 billion, according to a report by Reuters, citing lead managers of the deal.

The US dollar basket (DXY) continues to weaken and is approaching a one-month support level around 93.00 which needs to be closely watched. The ongoing row in the Senate over the coronavirus stimulus bill is running into an October 20 deadline imposed by House Speaker Nancy Pelosi and the near-term future of the US dollar will be dictated by today’s outcome.

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