EUR snaps winning streak as the greenback gains against peers
The Bloomberg Dollar Spot Index gained as both EUR and GBP reversed winning streaks. Optimism ahead of US data release supported the greenback along with real money funds looking to re-balance positions. News out of Australia signaled that the country is entering its first recession in nearly 30 years. The Australian dollar is one of the G10's worst performers alongside of the EUR.
September 2, 2020
EUR/USD 1.1836 GBP/USD 1.3318 USD/CAD 1.3084 AUD/USD 0.7317 USD/JPY 106.27 USD/CNH 6.8319 USD/ILS 3.3661 USD/MXN 21.8306 USD/CHF 0.9123 USD/INR 73.0338
USDThe greenback rebounded reversing recent trends ahead of US data releases and as real money funds re-balance positions. Several Fed Presidents are due to speak later today with the Fed’s Mester to discuss US Outlook and Monetary Policy.GBPSterling reversed its three-day winning streak in reaction to broad USD strength. GBP/USD fell as much as 0.4% currently trading around 1.3350. Later today, Bank of England Governor Andrew Baily and other policy makers are due to address Parliament. Commentary against the idea of negative rates would be supportive of the British pound.EUR
The EUR has surged 12% over the last 5 months and hit a two-year high yesterday. Today the common currency has retreated from the 1.20 level hovering around the 1.1850 range as real money funds re-balance positions.CADThe loonie remains largely unchanged continuing to trade within the 1.30 handle. CAD is the second best performing currency within the G10 next to the US dollar.ASIA/PACIFIC
The Australian dollar leads losses alongside the EUR after reports showed that the economy has fallen into its first recession in almost three decades. USD/JPY hit a high of 106.29, gaining for a third day.
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