China closes US consulate in Chengdu and investors question the pace to pre-covid economic levels
"If you want to achieve greatness stop asking for permission."
July 24, 2020
EUR/USD 1.1600 GBP/USD 1.2756 USD/CAD 1.3431 AUD/USD 0.7080 USD/JPY 106.00 USD/CNH 7.0172 USD/ILS 3.4151 USD/MXN 22.4829 USD/CHF 0.9247 USD/INR 74.8288
Bearish sentiment around the US dollar seems to be prevailing again in morning trading. However, the dollar's safe-haven status was on full display yesterday when it temporarily surged as equity markets tanked. The dollar is at a pivotal point as Covid concerns hamper the return to a full economy and US/China relations worsen.
July PMI data and June New Home Sales data due later this morning.GBP
The British pound held onto gains despite stalled trade talks with the European Union. Retail sales for June surprised on the upside as did July PMI data.EUR
The euro gained again this morning despite mixed PMI data. Germany was stronger than expected but French PMI for July missed estimates. FX traders seem to favor euro over the US dollar despite the dollar's traditional safe-haven status.CAD
The Canadian dollar lost ground in morning trading after gaining almost 2% this week vs. the US dollar. Gold continued its march higher helping the loonie as did a stable oil price.ASIA/PACIFIC
The Chinese renminbi weakened again after news of authorities closing a US consulate. China appears to be doing a better job of containing Covid relative to the US. With President Trump facing reelection in November investors are concerned he will continue to punish China as it remains a popular, bipartisan stance.
The Japanese yen strengthened as it's poised to break through the 106 level set in April.
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