The dollar is up 2% for the week as signs of a global recession become more clear
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The US dollar rose again vs. most every currency as financial markets grope for any investment trends other than a stronger greenback. Production data for March plunged around the world on coronavirus impacts leaving investors to wonder how long the economies of the world will suffer. The price of oil rose for a second day on hopes of production cuts after Russia indicated a willingness to cut production at a hastily OPEC+ meeting scheduled for April 6. CAD is flat vs. the dollar.
April 3, 2020
EUR/USD 1.0783 GBP/USD 1.2271 USD/CAD 1.4137 AUD/USD 0.6008 USD/JPY 108.58 USD/CNH 7.1109 USD/ILS 3.6374 USD/MXN 24.6057 USD/CHF 0.9786 USD/INR 76.1732
Dollar strength continues to close out a week of dollar gains. US nonfarm payrolls for March came in at -703K which was much worse than the forecast of -100K. The unemployment rate increased to 4.4% from 3.8% the month before. Today's data is the first time the US economy has lost jobs since 2010. The S&P rating agency confirmed the US’s AA+ sovereign rating.GBP
The pound plunged over 1% overnight giving up a push toward 1.25. IHS Markit’s composite & services PMI for March dropped from 53 last month (indicating expansion) to 36 which is the lowest reading ever. The pound had been outperforming most currencies until Friday perhaps showing a top to a new trading range.EUR
The euro weakened overnight for a 5th consecutive day after composite & services PMI for March came in at 29.7 vs. expectations of 31.4. IHS Markit, the provider of the survey said the reading is consistent with a 10% annualized fall in eurozone GDP. With dollar strength the only consistent financial market trend the euro could test 1.06.CAD
The Canadian dollar is flat vs. the US dollar in volatile trading. Hopes for a stabilization of the price of oil may help the loonie albeit at a very unfavorable level of $30/bbl. The C$ has not lost as much ground to the US dollar as many other currencies this week and looks to be settling into a trading range of between 1.40 and 1.44.ASIA/PACIFIC
The Australian dollar weakened overnight giving back much of yesterday’s late day gains. The increase in oil price could not help the A$.Japan’s yen was also weaker vs. the dollar on overall dollar strength while Chinese authorities guided the renminbi to a stable level to close out the week.
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