Dollar ends lower for sixth straight week
The dollar will end the week lower for the sixth time in a row. Data out of the US today showed personal incomes declined in June as benefits of stimulus checks subsided. Congress has failed to agree on a second stimulus deal as $600 a week benefits for the unemployed expire.
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July 31, 2020
EUR/USD 1.1807 GBP/USD 1.3132 USD/CAD 1.3428 AUD/USD 0.7162 USD/JPY 105.53 USD/CNH 6.9851 USD/ILS 3.4017 USD/MXN 22.19 USD/CHF 0.9120 USD/INR 74.81
The dollar pares some losses and is set to end lower for the sixth straight week. On the data front, personal incomes declined 1.1% in June – more than the 0.6% decline expected. Consumer spending increased by 5.6%, but remains largely below pre-pandemic levels.GBP
The pound added 0.3% and could continue to gather steam if spot continues to move further away from 1.30 strikes that expire in the next two weeks.EUR
The euro is testing its 100-month moving average of 1.1885 amid profit taking. The Common Currency slid off of a 1.1909 high for the day after a report showed the eurozone has officially sank into a recession.CAD
The Canadian dollar is rangebound in month-end flows and unchanged following May’s GDP release which showed an expected 4.5% gain.ASIA/PACIFIC
The offshore yuan strengthened 0.31% versus the dollar. On Thursday, President Xi Jinping said that monetary policy must be more targeted and given he did not call for lower interest rates or reserve requirement ratios, authorities will keep monetary policy stable in the medium term.
Japanese yen advances 0.4% versus the dollar after PMI and consumer spending releases this morning.
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