Dollar index jumps towards key 100 level
February 20, 2020
EUR/USD 1.0817 GBP/USD 1.2863 USD/CAD 1.3243 AUD/USD 0.6625 USD/JPY 112.11 USD/CNH 7.0371 USD/ILS 3.4271 USD/MXN 18.7455 USD/CHF 0.9822 USD/INR 71.6612
The dollar has gained for another day as a spike in coronavirus cases in South Korea and fatalities in Japan sent investors to safe havens. The dollar index rose towards a psychologically important 100 level – a level not seen since 2017. Jobless claims are due out this morning and are expected to show a slight increase to 210,000.GBP
Despite edging up after UK retail sales beat expectations, sterling fell for a fourth straight day to its lowest level since November on lingering Brexit uncertainty and the increasing strength of the US dollar.EUR
The ECB will release an account of its January meeting, which investors will comb for clues to a change in current policies. French CPI came in as expected at 1.5% YoY. The euro continues to trade near multi-year lows on dollar strength and weak economic conditions in the eurozone.CAD
US dollar strength outweighed higher oil prices and lifted the USD/CAD pair above 1.3260. Canada will release retail sales tomorrow, and they are expected to increase 0.1%.ASIA/PACIFIC
The offshore yuan sank following reports of analysts skepticism regarding the effectiveness of China’s stimulus efforts. Despite coronavirus concerns, USD/JPY soared towards 112.00 yesterday with the yen sinking near 2% from Wednesday’s open.