Dollar higher versus most peers and shakes off ADP drop
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May 6, 2020
EUR/USD 1.0820 GBP/USD 1.2388 USD/CAD 1.4097 AUD/USD 0.6452 USD/JPY 106.08 USD/CNH 7.1180 USD/ILS 3.5148 USD/MXN 24.1157 USD/CHF 0.9736 USD/INR 75.7650
USDThe dollar rose for a fourth straight session. Last night, President Trump again emphasized the importance of reopening up the economy saying “we have to get our country open and we have to get it open soon.” ADP private payroll showed a drop of 20.2 million in April – the worst in the history of the report. Jobless claims tomorrow and non-farm payrolls on Friday are expected to continue to show increases in unemployment.GBPThe pound slipped 0.4% on a fourth day of declines. Traders are focused on tomorrow’s BoE meeting and await the policy makers’ decision on adding additional stimulus measures. PM Boris Johnson is set to lay out the next steps for the UK’s response to the virus on Sunday.EURThe euro dropped for a third day following the EC stating that the EU economy is expected to contract 7.5% for the year. Both Germany factory orders and March eurozone retail sales were reported lower than expected.CADThe loonie moved above 1.41 as oil’s rally lost momentum and the US dollar climbed. Canada's jobs report is due out on Friday and a 4 million decline is expected.ASIA/PACIFIC
The Japanese yen outperformed the dollar, with the USD/JPY currency pair down 0.4% to a 7-week low. Trading conditions show thin liquidity, as Japanese markets remain on holiday through today.
US-China trade tensions are keeping the onshore yuan (CNH) weak.
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