USD Weakening Against Peer Currencies



USD gave back some recent gains against most of its major rivals on Tuesday, as strong regional economic data helped to offset worries about new COVID-19 cases in Europe and the United States. This is still the 1st wave there is no 2nd wave.

Profits at China’s industrial firms rose for a 5th month running in September and SKorea’s economy roared back to growth, official data showed.

That supported RMB Yuan CNY= and sent the won KRW= soaring close to a 7-month high. It also unwound some of Monday’s modest USD gains against peer currencies during an equities technical test of the 24 September Bull run filling the 29 September gap up.

Against a basket of currencies the .DXY fell 0.1% =USD. It was lower by about the same margin on the EUR, JPY, GBP and it slipped a bit further against the Aussie and kiwi.

Trade numbers in Asia have been improving. Most countries are now reporting positive Y-Y export growth offsetting concerns about the COVID-19 new cases in Europe.

The export-oriented currencies that are outperforming in Asia. The Loonie CAD=D3 also recovered some of Monday’s selloff as the price of Crude Oil stabilized.

Looking Ahead: Tuesday, investors are looking to US consumer confidence figures and the Richmond Fed manufacturing index at 1400 GMT.

Have a healthy day, Keep the Faith!