US dollar on track for largest 2-day gain in 7 weeks
The US dollar reversed its losing streak and extends its rebound for a second day against peers. Renewed concern from investors for a second wave of coronavirus shifts market sentiment to risk-off with WTI falling below $40/bbl. Oil prices continue to slide as OPEC and its allies announce a plan to increase crude output.
8/3 Monday: US ISM Manufacturing
8/5 Wednesday: US ADP Employment Change
8/6 Thursday: BOE Bank Rate Decision; US Initial Jobless Claims
8/7 Friday: US Change in Nonfarm Payrolls
August 3, 2020
EUR/USD 1.1705 GBP/USD 1.3014 USD/CAD 1.3432 AUD/USD 0.7083 USD/JPY 106.37 USD/CNH 6.9841 USD/ILS 3.4162 USD/MXN 22.5731 USD/CHF 0.9226 USD/INR 75.0100
USDThe Bloomberg Dollar index strengthened as much as 0.4% following the 3.3% loss last month - July was the US dollar’s worse month since January 2018. Markets will shift focus to upcoming speeches from Federal Reserve officials.GBP
Sterling has traded within a large range today as investors evaluate concerns that the UK could reintroduce virus lockdown measures and as the US dollar strengthens across the board. Markets are also focused on commentary and decision from the BOE later this week.EUR
EUR/USD fell as much as 0.5% following data showing job cuts which contradicted an earlier report that signaled a stronger return for the economy. The currency pair hit a daily low of 1.1696.CADIn response to weaker oil, USD/CAD hit fresh daily highs trading above 1.3440. WTI prices fell below $40 as concerns for a second wave of a coronavirus resurface.ASIA/PACIFIC
USD/JPY followed broad dollar trend trading higher hitting a level of 106.43 earlier in the session. New Zealand’s Prime Minister Jacinda Ardern announced that the government will continue to provide support to help the economy endure the pandemic fallout.
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