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Canadian dollar hits one-week low ahead of jobs data

Economies.com
2020-07-10 11:51AM UTC

The Canadian dollar fell on Friday, to deepen its losses for the second straight day and hit a 1-week low, as oil prices fell while the US dollar rose, ahead of the release of key data on the Canadian labor market, which provides insight on the Canadian economy recovery from the coronavirus.

 

USD/CAD rose 0.35% to the highest since June 30 at, after opening at 1.3584, and hitting a high of 1.3575.

 

Oil prices fell more than 2%, dropping for the second day in a row, on renewed concerns over the global demand.

 

The dollar index rose more than 0.2%, rising for the second day in a row, in recovery attempts from a 4-week low of 96.24 points.

 

The US dollar was lifted by safe-haven buying, amid fears over the coronavirus infections spike in the US, and concerns over delaying the quick recovery of the US economy, and US President Donald Trump  political tensions.

 

Investors are anticipating key economic data releases today on the Canadian employment change reading for June, which provides insight on the Canadian economy recovery from the coronavirus..

 

At 12:30 GMT, Canadian employment change reading is expected to reach 700.0K new jobs during June vs. 389.6K jobs in May, and the unemployment rate is expected to fall to 12.0% from 13.7%.

Silver eyes largest weekly gain in 2 months on safe-haven demand

Economies.com
2020-07-10 11:31AM UTC

Silver prices rose in European trade Friday, to resume gains after pausing yesterday on profit-taking from a 10-month high, on the cusp of the largest weekly gain in two months on strong safe-haven demand.

 

Silver prices rose 0.75% to $18.77, an ounce, after opening at $18.63, with a session-low of $18.48.

 

The white metal fell 0.3% yesterday, on profit-taking from the highest level in ten months of $19.03.

 

Silver prices have gained 4% so far during this week, to head for the fifth straight weekly gain, and the largest since May, on strong safe-haven demand, amid the growing risks in global markets.

 

Chief among these risks are the spike in coronavirus infections in the US, which is expected to delay the US economy's recovery from the coronavirus pandemic damages, in addition to the gloomy outlook for most major economies, especially in the euro area.

 

Silver was also lifted by hopes for improved Chinese actual demand, after the release of successive strong economic data in Beijing, which reflect the Chinese economy quick recovery from the coronavirus crisis.

Oil drops to week low on global demand concerns

Economies.com
2020-07-10 09:05AM UTC

Oil prices fell on Friday, to deepen losses for the second straight daily loss, and hit a week low on global demand concerns, after the coronavirus-linked restrictions were renewed in the US and other countries. 

 

US crude fell 2.1% to the lowest level since June 29 at $38.74 a barrel, after a session-high of $39.78, while Brent shed 1.9% to $42.34 a barrel from a high of $42.54. 

 

US crude lost 3.1% yesterday, and Brent fell 2.3%, posting the second loss in 3 days, on US oversupply concerns. 

 

Reuters reported that the US coronavirus infections saw a spike by more than 60,500 new cases of on Thursday, which is a new daily record.

 

Consequently, this forced the authorities in many US cities and states to delay reopening many economic activities.

 

Government authorities in Australia locked down the second most populous city, Melbourne, after a surge in coronavirus infections.

 

The Australian government will also decide today on reducing the number of citizens allowed to return from abroad, especially from the US, Brazil and India.

 

This renewed concerns about the global demand, which saw a relative recovery recently, after the end of the coronavirus lockdown measures in many Asian and European countries.

Gold targets fifth straight weekly gain

Economies.com
2020-07-10 09:20AM UTC

Gold prices rose in European trade Friday, to resume gains pausing yesterday on profit-taking from a 9-year peak, on the cusp of the fifth straight weekly gain on strong safe-haven demand.

 

Gold prices rose 0.35% to $1,807.06, an ounce, after opening at $1,800.8, with a session-low of $1,795.85.

 

Gold fell 0.3% yesterday, posting its first daily loss in 6 days, on profit-taking from the highest since September 2011 at $1,818.14.

 

Gold prices have gained 1.8% so far during this week, to head for the fifth straight weekly gain on strong safe-haven demand, amid the growing risks in global markets.

 

Chief among these risks are the spike in coronavirus infections in the US, which is expected to delay the US economy's recovery from the coronavirus pandemic damages, in addition to the gloomy outlook for most major economies, especially in the euro area.

 

The EU on Tuesday slashed its growth forecast for 2020 to a contraction rate of 8.3% from 7.5% in the previous estimates, followed by a recovery in 2021 by 5.8% from 6.0%.

 

Several US Federal Reserve officials have warned from the coronavirus impact on the US economy, which weighs down on consumer spending and the labor market, and will require the Fed to inject more stimulus.

 

In the UK, the Chancellor of the Treasury, Rishi Sunak, revealed a £30 billion ($38 billion) package of government stimulus to support the British economy from further impacts of coronavirus, and to avoid a violent unemployment crisis.

 

Gold stocks at the SPDR ETF fell 1.75 metric tonnes yesterday, the first drop since June 25, with the total at 1,200.82 metric tonnes, and pulled back from the highest level since May 2013 of 1,202.57 mt.