Commodity Currencies Slide on Oil, USD Braces for Election

The main commodity currencies took another spill on Friday, capping what for some was set to be their worst week since the March COVID collapse, while volatility gauges climbed ahead of next weeks U.S. election.

With Brent already down 10 for the week and still sliding, traders seemed ready to sell anything linked to crude.

Russias rouble dropped 0.5 to near 80 per dollar on course for a 4 weekly drop. Norways crown was down at 9.57 per dollar after a near 3.5 skid, while Canadas dollar was facing its worst week since April.

It came as the global tally of coronavirus cases rose by over 500,000 for the first time. France and Germany were going back into almost complete lockdowns and Thursday saw the United States notch a record 91,000 new cases.

The dollar paused its climb on the euro meanwhile. The European Central Bank said on Thursday that it will ramp up its emergency money printing programmes in December. The euro was near a fourweek low at 1.1679.

The oil currencies are really on edge because of a pretty ugly fall in crude, said Saxo Banks head of FX strategy John Hardy.

On the euro, you can peg it to the ECB it is clear something big is coming in December but the music is sounding very sour in the background with the coronavirus too.

Data later on Friday includes euro zone thirdquarter GDP, which will show an improvement, according to ECB chief Christine Lagarde, plus October inflation and September unemployment.

In the United States, September personal…

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