US$ edges slightly lower during a mixed trading session which saw North American equity markets strengthen, oil and gold prices remain flat.
Quarterly earnings season saw three of the US’s largest banks set aside $28 billion in loan loss provisions and all predicted more economic pain to come from the coronavirus pandemic. The coronavirus continues to take its toll in the US with three states reporting record rises in COVID-19 deaths. Opec+ is expected to ease oil output cuts into August as demand is anticipated to recovery into 2021. OPEC+ will meet again tomorrow to discuss the group’s current and future production. With oil prices remaining stagnant and states introducing fresh lockdown measures in response to record COVID cases. The Canadian dollar remains vulnerable to further weakness in response to lower oil prices and its number one trading partner continuing under pressure from coronavirus.
End of day market results:
USD/CAD +0.1% – US$ index -0.2% – EUR/USD +0.45% – GBP/USD -0.1%
TSX +1.72% – DJII +2.13% – ICE Brent Crude +0.35%
Wednesday Key economic data:
- GBP Consumer price index
- BOJ Press Conference
- US Industrial Production
- Bank of Canada rate statement
- Bank of Canada interest rate decision
Jonathan Roos, Currency Analyst, Payments International Inc.