Dollar little changed after lackluster job data
Optimism for a COVID-19 vaccine initially caused a resurgence in equity interest but fizzled out overnight amid concerns of worsening US-China relations. US jobless claims fell less than expected and retail sales rose 7.5% in June, but were down 8.1% in a year over year comparison.
July 16, 2020
EUR/USD 1.1420 GBP/USD 1.2574 USD/CAD 1.3526 AUD/USD 0.6991 USD/JPY 107.15 USD/CNH 6.9942 USD/ILS 3.4381 USD/MXN 22.3289 USD/CHF 0.945 USD/INR 75.1913
The dollar stayed slightly higher amid Q2 earnings reports and mixed economic data. Jobless claims posted their smallest weekly decline since March with new claims coming in at 1.3M versus 1.25M expected. Continuing claims came in at 17.3M versus 17.5M expected. Additional stimulus talks are at a standstill with the current $600 per week for the unemployed set to end.GBP
UK unemployment data released this morning showed the economy rebounding more than anticipated with a reading of 3.9% vs a forecasted 4.2%. The pound recovered earlier lost ground versus the dollar and is net unchanged near the $1.2560 mark.EUR
The euro erased an earlier loss versus the dollar ahead of the ECB announcement and held steady after the central bank kept its emergency monetary stimulus program unchanged.CADOil retreated from a four-month high after the OPEC+ alliance confirmed they will be tapering production cuts starting next month. As a result, the Canadian dollar declined versus its US counterpart.ASIA/PACIFICChinese YoY GDP for Q2 showed growth of 3.2%, a sign the economy is bouncing back. Behind the headline number, consumer spending was weaker than expected. President Xi Jingping reassured global companies that China continues to be a good place to do business despite the US’s push to isolate their geopolitical rival. President Trump has agreed to rule out additional sanctions on top Chinese officials for now.
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