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Turnaround Tuesday – Why Some Currencies Recovered & Others Didn t

July 20, 2021 Daily FX Market Roundup 07.20.2021 By Kathy Lien, Managing Director of FX Strategy for BK Asset Management Stocks bounced back sharply on Tuesday as the S&P 500 erased nearly of Monday’s losses. Investors were relieved that Treasury yields stopped falling but beyond that, there was no specific news or catalyst. The COVID-19 delta variant is a big worry but as long as hospitalizations and serious complications are limited in countries with high vaccination rates, investors are buying the dips. That could change quickly but for now, medical experts and government leaders continue to believe that more widespread vaccination is the solution to slowing the spread of the delta variant.

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