Dollar firms on risk off sentiment
The dollar gained broadly against peers as investors look to shed risk ahead of the weekend. Risk-off sentiment in European and US markets sent investors to safe haven assets including the US dollar and Japanese yen. Profit taking and concerns over economic uncertainty sent both the pound and euro lower.
August 21, 2020
EUR/USD 1.1780 GBP/USD 1.3100 USD/CAD 1.3216 AUD/USD 0.7166 USD/JPY 105.70 USD/CNH 6.9163 USD/ILS 3.4012 USD/MXN 22.1023 USD/CHF 0.9123 USD/INR 74.8450
USDThe greenback is higher against peers today after falling to two-year lows on Tuesday. The currency is up 0.5% today and on pace to gain 0.2% on the week. Risk-off sentiment in equities bolstered the dollar ahead of next week’s Jackson Hole gathering.GBP
After rallying to a YTD high on Wednesday, the pound dropped 0.8% versus the greenback on profit taking and as both sides of Brexit negotiations warn of stalled negotiations.EUR
After a bullish run earlier in the week, the euro fell nearly 1% after disappointing PMI data, extended profit taking from Wednesday and signs of a second Covid wave in Europe. PMI data showed a slowing economic recovery. Eurozone PMI for August dropped to 51.6 vs 54.9 in July as companies remain cautious about employment and economic recovery.CADThe Canadian dollar lost ground versus the US dollar on broad greenback strength. The Canadian currency is still set for six straight weeks of gains versus the dollar.ASIA/PACIFIC
The Japanese yen gained alongside the greenback and the pair is left unchanged. The yen is heading for a 0.7% gain versus the dollar this week.In Asia hours, the Chinese yuan rallied past a key support level versus the greenback and outperformed Asian peers on US-China trade talk optimism.
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