Dollar declines ahead of US earnings and G7 meeting
The US dollar index is lower by 0.30% as traders adjust positions amid US corporate earnings and ahead of a G7 e-meeting. US equities are poised to move higher, as shares of both JPMorgan and Wells Fargo rose in pre-market trading following positive Q1 earnings reports. Equity shares in both Asia and Europe moved higher after the long weekend. UST yields are slightly lower, but yields on higher-risk European sovereign bonds – Italy, Spain, Portugal – are all higher. Gold continues to climb, now at $1726 per ounce, as the new safest asset. The IMF projects global growth to contract by 3% this year.
April 14, 2020
EUR/USD 1.0961 GBP/USD 1.2584 USD/CAD 1.3883 AUD/USD 0.6400 USD/JPY 107.31 USD/CNH 7.0558 USD/ILS 3.5822 USD/MXN 23.5405 USD/CHF 0.9620 USD/INR 76.2825
USDThe dollar fell to its lowest level in two weeks amid relatively high FX volatility. The euro and UK pound were the strongest of the lot. Traders are focusing on a deluge of US corporate earnings and US economic data.GBP
The pound continues to rally, and is trading over $1.25 for the first time since mid-March. GBP is picking up against both the USD and EUR, as it gains from better risk appetite as COVID-19 cases slow and from talk of reopening countries.EUR
The euro moved higher by nearly 0.5% and to its best level since April 1 amid overall dollar weakness. The counter-trend rally in the Stoxx Europe 600 Index moved briefly 20% above its key low on March 18.CAD
The USD/CAD currency pair bounced off yesterday’s low at C$1.3860, its lowest level since mid-March. It’s back above C$1.39, but still well within an important 1.38-1.40 key support range. Traders await the BoC meeting tomorrow, expectations are that they hold rates steady at 0.25%.ASIA/PACIFIC
The Japanese yen gained nearly 0.5% overnight amid a 3% rally in the Nikkei stock exchange.
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