Currencies Begin Fightback as Coronavirus Lockdowns Are Eased
2020 has been a bit of a blur. 6 months have gone by in a blip and we suddenly find ourselves at the business end of June. For others, it’s been agonisingly slow. But what about global currencies? How have they fared so far this year? Today, we’re going to explore some of the biggest ones, before giving you our usual rundown of all the important trading events for this week. No time to lose!
A global rebound?
Today, we’re not really looking at major FX pairs, but instead assessing the YTD figures of some of the world’s biggest currencies in their own right. To do so, we’re using the USD for comparative purposes, and also the US Dollar Index, to keep tabs on the health of USD.
Let’s jump in.
USD (USDX)
Value on 02.01: 96.85 USD
Value on 26.06: 97.50 USD
YTD high: 102.82 USD
YTD low: 94.90 USD
YTD % change: +0.67%
Source: Yahoo Finance
GBP/USD
Value on 01.01: 1.3263 USD
Value on 26.06: 1.2338 USD
YTD high: 1.33 USD
YTD low: 1.15 USD
YTD % change: -6.97%
Source: Yahoo Finance
EUR/USD
Value on 01.01: 1.12 USD
Value on 26.06: 1.1221 USD
YTD high: 1.14 USD
YTD low: 1.07 USD
YTD % change: +0.19%
Source: Yahoo Finance
JPY/USD
Value on 01.01: 0.0092 USD
Value on 26.06: 0.0093 USD
YTD high: 0.0099 USD
YTD low: 0.0090 USD
YTD % change: +1.09%
Source: Yahoo Finance
CHF/USD
Value on 01.01: 1.0339 USD
Value on 26.06: 1.0546 USD
YTD high: 1.0782 USD
YTD low: 1.0114 USD
YTD % change: +2%
Source: Yahoo Finance
AUD/USD
Value on 01.01: 0.7017 USD
Value on 26.06: 0.6863 USD
YTD high: 0.7024 USD
YTD low: 0.5743 USD
YTD % change: +2.19%
Source: Yahoo Finance
CAD/USD
Value on 01.01: 0.7691 USD
Value on 26.06: 0.7306 USD
YTD high: 0.7481 USD
YTD low: 0.6897 USD
YTD % change: +5.01%
Source: Yahoo Finance
NZD/USD
Value on 01.01: 0.6786 USD
Value on 26.06: 0.6424 USD
YTD high: 0.6567 USD
YTD low: 0.5626 USD
YTD % change: +5.33%
Source: Yahoo Finance
Summary
So, there you have it. Almost all of these currencies have followed the same pattern against the USD. A big dip in the middle of March, before a steady rise and topping out around the 9th of June, in most cases. This, by and large, follows the pattern of COVID-19 progress and lockdown easing. Most of these currencies are showing signs of bouncing back. Yay — some positive news!
The main difference in patterns is the USD, which saw a slightly earlier dramatic dip and a sharp rise, followed by a fairly volatile couple of months. A second dip then hit hard on the 9th of June (to the benefit of the other currencies on this list). As we all know, the USA’ fight against coronavirus has been particularly difficult and this is clearly being reflected in the economy where recovery seems to be more of a struggle, at least for now.
What else is going on this week?
Here’s our usual modicum of super-important trading events coming up this week. Make sure you don’t lose sight of these:
● Things will only really get rolling on Tuesday, which will see the Chinese NBS Manufacturing PMI (CNY); the UK’s GDP Growth Rate YoY (GBP); the EU’s Core Inflation Rate YoY Flash update (EUR); and the US’ CB Consumer Confidence releases (USD).
● Wednesday’s a big day for the US, as we’ll get updates on the Markit Manufacturing PMI Final; the ISM Manufacturing PMI; and also the release of the FOMC Minutes (USD).
● Finally, the most potentially volatile events of the week round-up on Thursday, upon announcement of Canada’s Balance of Trade (CAD); the US’ crucial Non-Farm Payrolls (USD); and the just as important US Unemployment Rate update (USD).
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Speak soon!
The Contentworks team
