July 2020 in Figures

August 1, 2020

July was the weakest month for the dollar in practically ten years. The resulting improvement in U.S. price competitiveness resulted large U.S. equity price advances that were not experienced by European and Japanese stock markets. Dollar vulnerability also generated strong demand for gold, whose price soared nearly 10%. Late in the month gold briefly surpassed $2,000 for the first time ever. The price of oil also appreciated in July but not nearly as much as did gold.

None of the central banks examined in this feature changed key interest rates during July, but outside this group, cuts were engineered of 100 basis points in Tajikistan, 50 basis points in Kazakhstan, and 25 basis points in Russia, Colombia and Malaysia. Long-term interest rates closed out July below midyear levels in the United States, Germany, Switzerland, Great Britain and Canada.

10-Yr Yield 06/30/20 07/31/20 Change in July
U.S. 0.66% 0.53% -13 Basis Points
Germany -0.46% -0.53% -7
Japan 0.01% 0.01% 0
U.K. 0.17% 0.10% -7
Canada 0.52% 0.46% -6
Switzerland -0.50% -0.59% -9
CB Policy Rate 06/30/20 07/31/20 Change in July
Fed funds target 0.00/0.25% 0.00/0.25% 0 Basis Pts
ECB deposit rate -0.50% -0.50% 0
BOJ policy rate -0.10% -0.10% 0
BOE Bank Rate -0.10% -0.10% 0
Swiss 3M Libor -1.25/-0.25% -1.25/-0.25% 0
FX 06/30/20 07/31/20 July Chg in $
EUR/USD 1.1235 1.1773 -4.6%
USD/JPY 107.98 105.92 -1.9%
USD/CHF 0.9474 0.9141 -3.5%
GBP/USD 1.2392 1.3081 -5.3%
AUD/USD 0.6897 07141 -3.4%
NZD/USD 0.6452 0.6629 -2.7%
USD/CAD 1.3581 1.3421 -1.2%
USD/CNY 6.9919 6.9752 -0.2%
Equities 06/30/20 07/31/20 Change in July
S&P 500 3106 3271 +5.3%
Nasdaq 10059 10745 +6.8%
Djia 25813 26428 +2.4%
Dax 12311 12313 +0.0%
Nikkei 22288 21710 -2.6%
Ftse 6170 5898 -4.4%
Canada TSE 15531 16169 +4.1%
Swiss SMI 10045 10006 -0.4%
Commodities 06/30/20 07/31/20 Change in July
Oil, $ per barrel 39.27 40.27 +2.5%
Gold, $ per ounce 1793.00 1962.80 +9.5%

Copyright Larry Greenberg 2020.  All rights reserved.  No secondary distribution without express permission.

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