The dollar is lower versus all major counterparts
The dollar continues its slide dropping to the lowest level in over two years as the government struggles to agree on a stimulus. G-10 peers rose versus the dollar, led by the pound and the euro. The Democratic National Convention began last night and was focused on bringing unity to the country.
“The way to right wrongs is to turn the light of truth upon them.”
August 18, 2020
EUR/USD 1.1957 GBP/USD 1.3219 USD/CAD 1.3165 AUD/USD 0.7258 USD/JPY 105.36 USD/CNH 6.9073 USD/ILS 3.4001 USD/MXN 22.0775 USD/CHF 0.9016 USD/INR 74.76
USDThe dollar dropped 0.5% to the lowest level since May 2018. The currency was unchanged by Housing Starts and Building Permits data. Senate Republicans introduced a virus relief package including $300 per week unemployment supplement, US Postal Service funding and small business aid. The Democratic National Convention began last night with President Trump in the crosshairs of speeches made by Michelle Obama, John Kasich and Bernie Sanders.GBPThe pound rose 0.6% supported by both corporate and algorithmic demand as the GBP/USD pair formed a golden cross where the 50-DMA crossed the 200-DMA.EURThe common currency also gained versus the dollar on momentum-based demand, testing a two-year high. The euro has advanced 7% since the start of 2020 and 11% since the beginning of COVID lockdowns.CADBroad dollar selling propped the Canadian dollar for a second day even amid resignation of Finance Minister Bill Morneau. The pair dropped 0.4% to the lowest level since Jan 29.ASIA/PACIFIC
Advancing for a third day, the USD/JPY pair sunk half a percent to 105.46. The Chinese yuan advanced to five-month highs as the dollar retreats and China’s economy rebounds.
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