Commodity-linked currencies decline as USD gains
WTI oil prices slide to $40/bbl as markets moved away from risky assets. Investors shifted focus to negotiations between US lawmakers regarding a recovery package to address the coronavirus pandemic. G10 currencies weakened against the greenback except for the Australian dollar which strengthened following a statement from the central bank vowing to resume quantitative easing measures on Wednesday.
“Just because there’s a hurricane going on around you doesn’t mean you have to open the window and look at it.”
August 4, 2020
EUR/USD 1.1730 GBP/USD 1.2995 USD/CAD 1.3415 AUD/USD 0.7121 USD/JPY 106.09 USD/CNH 6.9882 USD/ILS 3.4245 USD/MXN 22.8601 USD/CHF 0.9170 USD/INR 75.0500
USDThe US dollar swung between gains and losses earlier in the trading session as the market anticipates data releases including employment numbers due later this week. The expectation is for jobless claims to remain high.GBP
Sterling is headed towards a third day of losses dropping to a low of 1.3005. Bank of England is scheduled to meet later this week and the market is expecting that the central bank will keep its benchmark rate unchanged.EURThe EUR slipped early in the session following mixed data released out of the eurozone. EUR is currently trading around today’s low of 1.1741.CADUSD/CAD is trading higher hitting levels above 1.34. The loonie weakened against the US dollar as WTI crude oil prices fell 1.7% to $40.32/bbl.ASIA/PACIFIC
USD/JPY rose to a high of 106.19 struggling to trade beyond the 106.20 level. The Australian dollar strengthened versus the US dollar following a statement from the central bank pledging to resume quantitative easing.
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