US dollar holds at two-year lows
August 6, 2020
EUR/USD 1.1856 GBP/USD 1.3170 USD/CAD 1.3277 AUD/USD 0.7209 USD/JPY 105.38 USD/CNH 6.9485 USD/ILS 3.4012 USD/MXN 22.3964 USD/CHF 0.9095 USD/INR 74.9312
The US dollar continues to trade around its two-year low as investors focus on negotiations of the next virus aid package. Data showed a sharp drop in US employment gains for July adding to US dollar weakness, the market will focus on employment data due to be released Friday.GBP
Sterling gained as much as 0.6% following commentary from the Bank of England sighting the pitfalls of negative rates and maintaining its monetary policy. The British pound gained the most among G10 currencies against the US dollar.EUREUR/USD continues to trade above the 1.18 level following data out of Germany that showed factory orders advanced more than expected despite a spike of Covid-19 cases which was the highest number in more than three months.CADThe Canadian dollar weakened in response to lower oil prices. WTI fell 0.6% trading below $42/bbl. Canadian jobs data will be released on Friday and the expectation is that it will show slower growth for the month of July.ASIA/PACIFICUSD/JPY hovers around 105.50 after trading marginally lower earlier in the session. Obon holiday period starts next week in Japan which is one of the busiest travel seasons in the country. Economy Minister and leader of the government’s virus-management policies, Yasutoshi Nishimura is warning the country to be exercise caution to avoid a virus wave.
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