Currency Markets Review – July 30th, 2020

Markets stabilize after they initially slump following the record decline in the US GDP, surging COVID-19 cases and the suggestion to delay the U.S election.

U.S GDP recorded its largest decline in output since the great depression showcasing the past 3 months of lockdown. The virus continues to impact U.S lives as they record their third consecutive day of +1,000 deaths. The U.S President suggested delaying the presidential election, news initially weakened the US Markets.

The US$ Index, Trade & Petro currencies ended the session weaker while Euro and GBP extended their gains. Equity and oil prices recouped some initial losses, ending the day just slightly down on the day. The Canadian dollar came under selling pressure from weaker oil and concerns over the longer term implications of the coronavirus surges in the US.

End of day market results:

USD/CAD +0.80% – US$ index -0.51% – EUR/USD +0.45% – GBP/USD +0.72%                                                                                          

TSX +0.03% – DJI -0.85% – ICE Brent Crude -1.40%

Friday’s key economic data

  • CNY Non-Manufacturing PMI (Jul)
  • CNY Non-Manufacturing PMI (Jul)
  • Germany Retail Sale
  • EU Consumer Price Index – core (YOY)(Jul)
  • EU Consumer Price Index – core (YOY)(Jul)
  • EU Gross Domestic Product s.a (YOY)(Q2)
  • US Core personal Consumption Expenditures – Price Index (YOY) (Jun)
  • US personal income (MoM)(Jun)
  • US Michigan Consumer Sentiment Index (Jul)
  • CAD Gross Domestic Product (MoM) (May)     

Jonathan Roos, Currency Analyst, Payments International Inc.

(Summer intern)