US unemployment data surpasses expectations helping both the equity and oil markets rally, but ongoing fears of a second-wave of coronavirus capped market gains. US unemployment dropped to 11.1%, with a record 4.8 million new jobs being created in June. The US recorded 83,000 new COVID-19 cases the last 2 days bringing the total number of case to 2.3 million in the US, with global cases approaching 11 million. Currency markets were net US$ safe haven buyers, helping the US$ index rise slightly vs a basket of major currencies. The Canadian dollar edged marginally higher supported by strengthening oil prices, but risk-off US$ buying offset the C$ gains.
End of Day Market Result
USD/CAD Down 0.10% – US$ Index Up 0.05% – EUR/USD Down 0.1% – GBP/USD Down 0.03%
DJI Up 0.36% – TSX Up 0.69% – ICE Brent Crude Up 1.76%
- US 4th July Holiday – Expect markets to be quiet.
Jonathan Roos, Currency Analyst, Payments International Inc.