USD weakness returns, closing Q3 with 3.5% drop
The US dollar experienced its weakest quarter since the beginning of 2017 dropping 3.5%. Two large factors that contributed to the lower US dollar include the rally for US equities and the speculation that additional fiscal stimulus is imminent. News out of the UK signaled that Brexit negotiations are not moving in the right direction causing Sterling to weaken.
October 1, 2020
EUR/USD 1.1740 GBP/USD 1.2899 USD/CAD 1.3307 AUD/USD 0.7186 USD/JPY 105.6900 USD/CNH 6.7509 USD/ILS 3.4242 USD/MXN 21.9351 USD/CHF 0.9183 USD/INR 73.1425
USDThe dollar ended September with a monthly gain but not large enough to erase the quarterly loss of 3.5%. The US dollar’s appeal has diminished as US equities trade higher and as investors expect additional fiscal stimulus.GBPSterling led losses for G-10 currencies earlier in the trading session following a report that the UK and European Union are far from agreement in Brexit negotiations. GBP/USD weakened 0.8% hitting a low of 1.2820 before reversing losses.EURThe EUR slipped against the greenback earlier in the trading session but has since reversed losses. EUR/USD advanced 0.3% hitting a high of 1.1770 as demand for topside exposure via options picked up momentum.CADUSD/CAD fell to lowest level since September 21 hitting 1.3284. The loonie extended its rally from Wednesday as investors shifted towards riskier assets. The pair strengthened over 2% for the month of September.ASIA/PACIFIC
The Australian dollar and New Zealand dollar climbed alongside US stock futures with both currencies hitting one-week highs. USD/JPY remains largely unchanged trading within a range of 105.41-105.68.
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