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”

Vera Lynn
  • FX Rates
    June 23, 2020

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    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.

    EUR
    The 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.
    CAD
    The 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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Peter Compton
WRITTEN BY
Peter Compton

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