Currency Markets Review – July 22nd, 2020

Markets end the trading day mixed with investors conflicted between escalating Sino/US tensions and rising Covid-19 cases versus expected EU and US stimulus. 

The US gives China 72 hours to close its consulate in Houston. Markets now await the Chinese response as they have assured “firm countermeasures”. Coronavirus cases rise in the US with 19 states reporting new record highs of hospitalizations. However, the EU is expected to give final approvals to the 750 billion Euro stimulus package and the US stimulus is expected to be approved in early August. Global equity markets were mixed, gold hit a multi-year high and oil and the dollar index ended the session slightly down. The Canadian dollar rallied vs the US dollar finding support from Canadian CPI which posted its biggest acceleration in 9 years. 

End of day market results:

USD/CAD -0.33% – US$ index -0.16% – EUR/USD +0.38% – GBP/USD +0.07%                                                                                                       

TSX +0.05% – DJI +0.62% – ICE Brent Crude -0.11%

Thursday’s key economic data

·      USD initial Jobless Claims

·      EUR Gfk Consumer Confidence survey

·      GBP BoE’s Haskel speech

Jonathan Roos, Currency Analyst, Payments International Inc.

(Summer intern)