Positive Chinese economic sentiment helped spur a rally in CNY and helped commodity currencies to rally, helping the yuan record its strongest day vs US$ since December.
The “risk-on” sentiment was reinforced by better than expected PMI data from both the US and Europe. The economic optimism from China helped most global equity markets rally as investors exited safe haven US dollar. The US dollar index fell against a basket of major currencies allowing the NOK, RUB and AUD to rally +0.5% intraday. Oil prices remained near flat on the day receiving support from positive economic data and offset by pressure from rising covid-19 cases in the US. The Canadian dollar sat on the sidelines remaining near flat as it reflects today’s flat oil prices, negative business outlook from the Bank of Canada amid a weaker US dollar
End of Day Market Result
USD/CAD Down 0.04% – EUR/USD Down 0.01% -GBP/USD Down 0.06%
DJI Up 1.78% – TSX Up 0.47% – ICE Brent Crude Up 0.77% – US$ index Down 0.40%
- CAD Ivey Purchasing Managers Index
- USD Fed Quarles Speech
- USD API Weekly Crude Oil Stock
Jonathan Roos, Currency Analyst, Payments International Inc.