After losing value for 4 consecutive days the US dollar gains vs. most major currencies
Risk-on sentiment in financial markets have hurt the dollar since the start of July. Today traders are awaiting a response from China to the US closing one of China’s consulates in the US on accusations of theft of intellectual property. The dollar is stronger vs. most currencies except the Swiss franc which is gaining in sympathy with recent euro bullishness and safe-haven status.
“Let the good times roll, let them knock you around.”
July 23, 2020
EUR/USD 1.1566 GBP/USD 1.2694 USD/CAD 1.3413 AUD/USD 0.7107 USD/JPY 107.1200 USD/CNH 7.0078 USD/ILS 3.4152 USD/MXN 22.4433 USD/CHF 0.9270 USD/INR 74.7588
Weekly US jobless claims came in worse than expected with 1.4M first time filers for unemployment vs. an expected 1.3M. Continuing claims sank more than expected to 16M vs. the expected 17M. By way of comparison, the highest number of Americans seeking unemployment during the Credit Crisis of 2009 was 6.6M.GBP
The pound lost ground vs. the US dollar due to a UK Brexit negotiator stating that there would be no early agreement with the European Union in July.EUR
After bullish sentiment pushed the euro above 1.16 to the dollar, FX traders are taking a pause with the euro down slightly in morning trading. Financial markets are awaiting the Chinese response to the US closing a Chinese consulate. The pause has led to profit taking and a “wait-and-see” approach.CAD
The Canadian dollar gave back early gains as headline US jobs numbers disappointed. Gold hit a 9-month high and then sold off hurting the loonie. Oil was also slightly down on continuing concerns about demand – especially in China, but also in the US.ASIA/PACIFIC
The Japanese yen is steady as Japan begins a 4-day weekend.
The Chinese renminbi remained around 7.01 as traders await the Chinese reaction to the US closing a Chinese consulate in Houston.
The Australian dollar has been a favorite for risk-on traders as the currency has steadily marched higher since March lows of 0.58. Today, FX traders took profits on the Aussie as they await Chinese retaliation toward the US.
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