Quarter-end flows support the greenback
The greenback is modestly higher than its G-10 peers as month-end flows support the currency. Last night’s US Presidential debate resulted in risk appetite retreating as the conversation highlighted a contested election in November. Betting odds are signaling a higher probability of a Joe Biden win. Data later this week will be a focus for the markets including ADP employment, US employment reports and GDP.
September 30, 2020
EUR/USD 1.1707 GBP/USD 1.2864 USD/CAD 1.3378 AUD/USD 0.7138 USD/JPY 105.6500 USD/CNH 6.8030 USD/ILS 3.4355 USD/MXN 22.2898 USD/CHF 0.9223 USD/INR 73.7725
USDThe US dollar strengthened during Asia hours as equities traded lower and Treasuries rose following betting odds signaling that Joe Biden will win the US election after the US Presidential debate. The Bloomberg dollar index is trending towards its worst quarter in three years but its best month since March.GBPSterling snapped its two-day winning streak as Brexit negotiations show signs of reversing positive momentum. GBP/USD is on track to gain 3.4% this quarter.EUREUR/USD fell 0.4% holding above the 1.17 level. The common currency has strengthened 4.4% over t he last quarter but is on track to loss almost 2% this month.CAD
The loonie remains largely unchanged and the pair is on track to close the month up 2.6%. Crude oil weakened 0.6% this morning.ASIA/PACIFIC
Better than expected manufacturing data out of China supported the Australian dollar with AUD/USD up 0.3% earlier in the session. USD/JPY remains largely unchanged maintaining a range of 105.44-105.80.
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