Currency Markets Review – July 23rd, 2020

Markets move into “risk off” territory amid rising covid-19 cases, weak US jobs data and on-going Sino/US tensions. 

US covid cases surpass 4 million as they accumulate 2,600 new cases every hour. US jobless claims add 1.4 million new claims surpassing expectations. Equity markets and oil prices are trading lower on concerns about labor market weakness and deteriorating Sino/US relations. The dollar hit a 22-month low against a basket of currencies and gold rose for a fifth straight session to almost 1,900 an ounce. The Canadian dollar strengthen slightly having its fourth straight days of gains despite falling oil prices and rising covid cases in the US. 

End of day market results:

USD/CAD -0.04% – US$ index -0.19% – EUR/USD +0.22% – GBP/USD -0.02%                                                                                                        

TSX -0.89% – DJI -1.31% – ICE Brent Crude -1.81%

Friday’s key economic data:

  • EUR Markit Manufacturing 
  • PMI GBP Markit Services 
  • PMI USD Markit Manufacturing 
  • PMI USD Markit Service PMI

Jonathan Roos, Currency Analyst, Payments International Inc.

(Summer intern)