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Dollar Turns In Mixed Performance Against Peers

Dollar Turns In Mixed Performance Against Peers

The U.S. dollar was weak against most of its peers on Friday as risk sentiment improved a bit on the back of some positive economic data from the euro area and on stronger equity markets after Gilead Sciences’ update about its remdesivir drug.

Gilead Sciences said remdesivir showed a sharp mortality risk drop when used to treat patients suffering of coronavirus. BioNTech’s CEO also told The Wall Street Journal the German biotechnology company’s coronavirus vaccine candidate could be ready for approval by December.

The upbeat treatment and vaccine news overshadowed the news that the U.S. reported a record daily increase in new coronavirus cases of more than 63,000.

In U.S. economic news, producer prices unexpectedly decreased in the month of June, according to a report released by the Labor Department. The report said the producer price index for final demand fell by 0.2% in June following a 0.4% increase in May. Economists had expected prices to climb by another 0.4%.

Excluding food and energy prices, core producer prices inched up by 0.1% in June after rising by 0.3% in May. Core prices were also expected to increase by 0.4%.

The dollar index, which slid to 96.44 by mid-morning, recovered subsequently and was down marginally at 96.66.

Against the Euro, the dollar weakened to $1.1327 by late morning, and despite recovering to $1.1300, was down 0.13% from previous close.

Against Pound Sterling, the dollar dropped to a low of $1.2665 before regaining some lost ground. It was last seen at $1.2621, compared to its previous close of $1.2604.

The Japanese Yen was stronger at 106.92 a dollar, firming up from 107.20 a dollar.

Against the Aussie, the dollar was stronger at $0.6948, rising from $0.6964 a unit of Australian dollar.

The Swiss franc was weaker at 0.9414 a dollar, giving up ground from 0.9401, while the Canadian currency Loonie was down marginally at 1.3598 a dollar, after strengthening to 1.3575 earlier.

Positive jobs data pushed up the Loonie earlier in the session, but the currency retreated later. However, its loss was just marginal thanks to a sharp rise in crude oil prices.

Data released by Statistics Canada showed employment in the country rose by 952,900 in June 2020, after rising 289,600 in May. Full-time employment was up by 488,100 in the month, compared to an increase of 219,400 a month earlier.

Meanwhile, unemployment rate fell to 12.3% in June 2020, from 13.7% a month earlier.

The material has been provided by InstaForex Company – www.instaforex.com