Weekly Update 24 Jul 2020: Currencies Crash

National currencies and bonds fell hard, and equities (other than gold stocks) moved lower. Cryptocurrencies and commodities were mixed. The week's biggest gains were in Ethereum and silver, up 14.0% and 11.5%. The largest losses were in cotton, which fell 7.8%.

National currencies were hammered hard this week. Almost every currency I track is at new all-time lows, including the USD, EUR, CNY, CHF, GBP, CAD, RUB, and ARS as well as the SDR. The only exceptions are the JPY, which sits just 1% above its all-time low, set on 21-Jan-1980, and the CLP and AUD, which are about 2% above their all-time lows set in April of this year. On a weekly basis, the US Dollar was hardest hit, dropping 5.0%. The Euro and British Pound (not in table) outperformed their peers, falling 3.3% and 3.1% respectively. Short term treasury notes dropped 5.0% (in line with USD cash) while long term bonds declined 3.3%.

Bitcoin rose to a high of 159.9 grams on Wednesday, but fell sharply on Friday to close at 155.9 grams, off 1.0%. Ethereum was relatively flat until Wednesday, when it started rising rapidly. It finished the week at 4.57 grams, up 14.0%, the best showing for any asset in the table.

Gold stocks rose 2.1%, but all other major equity indexes fell, led lower by the Dow Industrials which finished down 5.7%. The smallest drop was in the S&P 500, off 2.4%.

As usual recently, much of the big price action was in the commodities. Silver rocketed higher, gaining 11.5% and breaking out of its long term downtrending channel. Platinum also rose strongly, gaining 6.7%. Cotton saw the largest decline, falling 7.8%. Copper and crude oil also fell, closing 5.4% and 3.3% lower.

Over the weekend, national currencies continued to fall while cryptocurrencies gained ground.

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