Commodity shipments reach 7-month high
Wednesday 24 June, 2020
Daily Currency UpdateCAD - Canadian DollarA unique index tracking rates for ships ferrying dry bulk commodities reached its highest point since November, and it quadrupled since May.The Baltic Dry index tracks and reflects rates for ships transporting iron ore, coal, grains and many other commodities. It tracks 23 shipping routes and the cost to move goods through those routes. It’s an important bellwether for the global economy and reflects the shifting demand of economies as they open back up.The Baltic Dry index dropped below 400 points in mid-May at the height of the global lockdown. Yesterday, the Baltic Dry index surpassed 1000 for the first time since December.USD/CAD saw some fresh selling pressure. For a moment, the pair dropped below the key 1.3500 psychological level.
Key MoversAlthough yesterday’s sessions finished with a positive risk, yesterday was a wild ride for risk assets. Investors shed risk assets during Asian trade when headlines surfaced that White House trade advisor Peter Navarro, informed news outlets that President Donald Trump had made the decision to terminate the China trade deal. This saw risky currencies like the AUD and NZD sold off aggressively and US equity futures much lower. Having since back tracked from his comments and after a raft of better than expected flash PMI’s out of Europe, risk assets recovered to finish the day in positive territory.
- USD/CAD: 1.350 - 1.359 ▼
- GBP/CAD: 1.687 - 1.70 ▼
- EUR/CAD: 1.528 - 1.534 ▼
- CAD/AUD: 1.061 - 1.070 ▲