Dollar holds steady after yesterday’s gains
After reaching two-year lows on Tuesday, the dollar rebounded nearly 1% versus peers and is holding steady this morning. FOMC minutes offered little clues on the Fed’s course of action this fall. Market’s aren’t seeing yesterday’s dollar gains as a reversal and are holding steady ahead of weekly jobless claims due out tomorrow. Last night’s DNC speeches included President Obama, and VP candidate Kamala Harris.
August 20, 2020
EUR/USD 1.1814 GBP/USD 1.3090 USD/CAD 1.3237 AUD/USD 0.7141 USD/JPY 105.93 USD/CNH 6.9193 USD/ILS 3.4033 USD/MXN 22.2955 USD/CHF 0.9118 USD/INR 75.0300
After rising nearly 1% yesterday since Tuesday’s two-year low, the dollar is steady and mixed versus G-10 peers ahead of weekly jobless claims. Capitol Hill remains in a stalemate over another round of stimulus. FOMC minutes released yesterday gave few clues to whether further easing is expected in the fall.GBPThe pound is up 0.3% versus the dollar after earlier reaching session highs of 1.3150. Brexit negotiations have resumed this week and lack of progress has weighed slightly on the currency.EURThe euro dropped versus the dollar yesterday but curbed losses at 1.1810 levels. A bullish view on the currency is expected to remain as the pair trades above the 200-day moving average. The currency was left little changed after ECB minutes release.CAD
After losing 0.4% yesterday, the Canadian dollar is holding steady against the greenback. Broad US downtrend remains intact and investors are not taking the dollar’s rally as a reversal.ASIA/PACIFIC
US and China are expected to meet in the coming days to discuss the progress of Phase 1 of the trade deal made in February.
The Japanese yen is up 0.3 against the US dollar after the dollar failed to capitalize on overnight gains. Concerns over US economy held USD bulls back from placing bets.
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