Commodity-linked currencies weaken on the drop in oil
WTI oil slumped below $15 a barrel hitting lowest levels in 21 years. In reaction to this move, oil currencies including the Norwegian krone and Canadian dollar weakened. The US dollar is firmer across the board as oil experiences its biggest one day decline in nearly four decades and as global equities weaken.
4/20 Monday: CA Wholesale Trade MoM
4/21 Tuesday: GE ZEW Expectations, US Existing Home Sales
4/22 Wednesday: UK CPI; Canada CPI
4/23 Thursday: US Initial Jobless Claims; Eurozone Manufacturing
4/24 Friday: US Michigan Sentiment; US Durable Goods
April 20, 2020
EUR/USD 1.0856 GBP/USD 1.2428 USD/CAD 1.4098 AUD/USD 0.6361 USD/JPY 107.8200 USD/CNH 7.0828 USD/ILS 3.5701 USD/MXN 23.9295 USD/CHF 0.9685 USD/INR 76.5375
The greenback strengthened against peers amidst risk-off market sentiment. Oil prices declined drastically in reaction to low demand and excess oil supply. Global equities struggle as corporate quarterly earnings are due to be released and as the spread of coronavirus has yet to be contained.GBP
Sterling fell after two weeks of strengthening against the dollar. Bank of England’s policy maker Ben Broadbent made a statement that a three-month lockdown would not be unreasonable and a 35% drop in the UK’s second quarter GDP is not out of the question.EUREUR/USD is lower on broad US dollar strength and currently trading below 1.09. The currency pair has maintained a range of 1.08-1.10 since April 8.CADUSD/CAD is almost 1% higher following the decline in oil prices. WTI has fallen to lowest levels in 21 years, trading below $15 per barrel.ASIA/PACIFIC
The New Zealand kiwi was one of the few G10 currencies to strengthen against the US dollar after news that the government would relax lockdown rules next week as coronavirus cases continue to decline. USD/JPY is up slightly on broad USD strength.
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