Financial markets power ahead as European PMI data for June is better than expected
The US dollar continued to weaken vs. most currencies as investors focused on strong PMI data and largely ignored threats of a second wave of covid infections. Asian trading markets were rattled after US Trade Advisor, Peter Navarro, said the trade deal with China was “over”. His comment was later retracted. Higher commodity prices helped commodity currencies like the Canadian and Australian dollar.
“We'll meet again, don't know where, don't know when”
June 23, 2020
EUR/USD 1.1328 GBP/USD 1.2486 USD/CAD 1.3499 AUD/USD 0.6964 USD/JPY 106.4500 USD/CNH 7.0625 USD/ILS 3.4256 USD/MXN 22.3535 USD/CHF 0.9442 USD/INR 75.6450
The dollar weakened after June PMI data in Europe came in stronger than expected. Donald Trump was quick to reassure markets that US-China trade negotiations were still active after trade advisor, Peter Navarro, rattled markets when he told Fox news talks were “over”.
Markit PMI data for June will be released later this morning along with Home sales for May.GBP
The British pound headed toward a second day of gains after June PMI data came in much better than expected. Also, the UK government announced additional lockdown easing to become effective July 4.EURThe euro added to yesterday’s gains after PMI data came in better than expected for June. In France, PMI actually registered expansion for the first time in 4 months.CADThe Canadian dollar continued a two-day rally on overall US dollar weakness and a higher oil price. OPEC+ countries seem to be holding to oil production cuts helping support oil price.ASIA/PACIFIC
The Chinese renminbi recovered from a shock comment by Trump’s top trade advisor and is now trading stronger relative to the US dollar.
The Aussie dollar rallied for a second day on overall US dollar weakness and higher commodity prices.
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