Currency Markets Review – July 16th 2020

The US$ gains, equity markets and oil prices slide as the continuous spread of the coronavirus initiates a “risk off” sentiment despite stronger than expected US data. 

Covid-19 cases in the US continue to rise adding pressure to the US economy as businesses enter a second round of lockdowns. Southern states such as California and Florida have reinstated restrictions including night curfews and no indoor dining causing further economic harm. Oil dipped as OPEC+ plans to increase its oil capacity by 26% starting August and added fears that the second wave may curb future fuel demand.  As Canada’s number one trading partner continues to struggle with the pandemic and falling oil prices, the Canadian dollar reversed its gains from yesterday’s rally. 

End of day market results:

USD/CAD +0.49% – US$ index +0.23% – EUR/USD -0.24% – GBP/USD -0.23%                                                                                                       

TSX -0.24% – DJI -0.5% – ICE Brent Crude -1.1%

Friday’s key economic data & events

  • EU Leaders Special Summit 
  • EUR Consumer Price Index 
  • USD Michigan Consumer Sentiment Index
  • US Housing Starts Change
  • US Building Permits Change

Jonathan Roos, Currency Analyst, Payments International Inc.

(Summer intern)