Currency Markets Review – August 4th, 2020

Commodity and equity markets edge slightly higher on US stimulus hopes and encouraging declines in covid cases across the US.

Top senate democrats have reported some progress made on the coronavirus aid bill, but the Dems & Reps still remain apart on multiple issues. The US had its second day of less than 50,000 new coronavirus cases which is a positive first sign . Oil prices hit its highest levels since early March but prices remains capped due to demand concerns and rising global output levels. The US dollar weakened slightly vs a basket of currencies as investors wait for more news on stimulus and economic data. The C$ rose to a five-day high against the weaker greenback as optimism increased from US stimulus, better than expected Canadian PMI data and higher oil prices. 

End of day market results:

USD/CAD -0.45% – US$ index -0.30% – EUR/USD +0.30% – GBP/USD +0.45%                                                                                           

TSX +1.23% – DJI +0.62% – ICE Brent Crude +0.50%

Wednesday’s key economic data:

  • EUR Retail Sales (YoY) (Jun)
  • CAD International Merchandise trade
  • USD Non-Manufacturing PMI (Jul)

Jonathan Roos, Currency Analyst, Payments International Inc.

(Summer intern)