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.
Tags: bond yields, equities, foreign exchange, oil and gold prices
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