Market commentary

• USD rebounded from its poor August performance. Rising COVID-19 cases outside the U.S. coupled, with investor concerns in the run-up to the November election is giving the dollar a boost. The ICE U.S. Dollar Index® (USDX) rose ~ 2 points net in September but traded in a 3-point range during the period, from a low 91.80 to 94.80 on September 24, before falling back to the 94 level at month-end.
• The most significant gains for USD came in Europe. On Sept 1, EUR briefly pushed above the $1.20 mark, a 26-month high. The common currency fell steadily throughout the month, bottoming out around $1.16 as a second wave of infections took hold. EUR did rally into month end, closing $1.1740. GBP also had its problems. After rising to a 9-month high of $1.3483 early in the month, sterling was pressured primarily by concerns surrounding the Internal Market Bill. GBP declined to below the $1.26 level before recovering during the final few trading sessions to just above $1.29. Other European currencies lost ground to the dollar, including CHF, SEK and NOK.
• In Asia-Pacific, the dollar held its own. JPY ended the month close to where it started, spending most of the time between 105 and 106 picking up just one-half yen. CNY continued its move higher on a steady stream of positive Chinese economic data. CNY began the month at 6.85, improved to 6.75, a 15-month high vs. USD before settling in at 6.80 to close September. This moved capped the best quarterly performance for CNY since 2008.
• Elsewhere, the dollar was generally positive. CAD lost the 2 ½ cents it gained in August, falling to 1.3420 before stabilizing. TRY dropped to yet another record low. The lira lost 8% for the month despite a massive rate increase in September to shore up the currency. RUB declined on worsening COVID-19 news and falling oil prices, but it stopped short of hitting the 80 per USD level (79.96) before closing around 78.