The Empire State dismal numbers, a pull-back in treasury yields, plus anticipation of what the U.S. Federal Reserve minutes are on Wednesday caused the USD to weaken against most currencies including Canada. Gold prices jumped as investors are looking for some form of a safe haven for their money. Gold moved over 2.17% this morning almost $48 USD an ounce.
Oil prices are up 1.12%, news that China planned to ship large volumes of U.S. crude in August and September countered rising tensions between the two countries and a delay in the review of their trade pact over the weekend. This however has been offset slightly by the emergence of new coronavirus hot spots particularly in Europe also put pressure on the gains of fuel demand and oil price.
The Canadian dollar has reacted positively having broken the 1.3200 level once this morning, some analysts are calling for further weakness on the USD, Wednesday’s FOMC minutes will provide some form of guidance as what the Fed will do in the near term, don’t expect any further rate cuts.