Dollar shakes off jobless claims, mixed versus peers
I can never be safe. I always try and go against the grain. As soon as I accomplish one thing, I just set a higher goal. That’s how I’ve gotten to where I am.
May 7, 2020
EUR/USD 1.0785 GBP/USD 1.2318 USD/CAD 1.4076 AUD/USD 0.6450 USD/JPY 106.52 USD/CNH 7.1088 USD/ILS 3.5120 USD/MXN 24.1897 USD/CHF 0.9770 USD/INR 75.7650
USDPresident Trump reignited trade tensions saying the US would be evaluating China’s compliance with Phase 1 of the trade deal. US and Chinese negotiators are expected to talk next week. The dollar initially lost ground but rose ahead of jobless claims data which showed 3.17 million jobs lost.GBPThe BoE meeting today left rates unchanged but signaled they expect to expand stimulus efforts next month. The BoE also said they are expecting Britain's economy to shrink as much as 25% in GDP in Q2 and up to 14% for the full year. The pound gained slightly after the BoE announcement and markets will look to Sunday’s comments from Boris Johnson on next steps on potential lifting of lockdown restrictions.EUR
The euro continued trading below $1.08, adding to a 1.6% three-day fall. German industrial production plunged 9.2% in March and is down 11.6% YoY. EUR/USD remains fairly immune to data swings and remains range-bound.CADThe loonie outperformed the dollar on a pickup in oil prices as June WTI futures rose 10% to one-month highs.ASIA/PACIFIC
Chinese and US trade negotiators are expected to speak as soon as next week after President Trump threatened to terminate the existing Phase 1 trade agreement. The offshore yuan advanced slightly as investors were mixed in assessing disappointing economic data and the potential risk of another trade war.
The yen gained versus the dollar for the first session in five on increased tensions between the US and China.
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