Dollar is stronger today awaiting US press conference this afternoon
After yesterday’s bloodbath, the dollar found some support as markets await news of a potential stimulus coming from the Trump administration. The euro and Japanese yen pared some of yesterday’s gains on the news. Saudi Arabia and Russia continue to battle over oil production.
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March 10, 2020
EUR/USD 1.1372 GBP/USD 1.3024 USD/CAD 1.3677 AUD/USD 0.6551 USD/JPY 104.40 USD/CNH 6.5996 USD/ILS 3.5254 USD/MXN 20.9134 USD/CHF 0.9320 USD/INR 74.08
The dollar strengthened on the news of the potential stimulus. The US eagerly awaits a press conference later today where President Trump will provide more clarity on actions to support growth in the midst of this week’s equity selloff. An 85% chance of a 75 bp rate cut at the March 18 Fed meeting has also been priced in.GBP
GBP/USD is trading below 1.31 today after touching 1.32 yesterday. This movement is likely supported by a stronger US dollar. UK’s budget is due out on Wednesday and will likely account for additional spending to mitigate the coronavirus spread and support the economy.EUR
The euro’s five-day bullish rise failed to break through the 1.1480 resistance and breaking the upward trend line. Currently, the pair is tracking sideways. Italy has taken dramatic measures to control the coronavirus and has put the entire country on lockdown with a promise to support industries and citizens financially.CAD
After jumping to the highest level since 2017 yesterday, the pair is trading slightly lower today.
Saudi Arabia’s Aramco has promised to supply 12.3 millions of barrels of oil a day next month - much greater than February’s 9.7m - in an attempt flood the market with as much oil as possible.ASIA/PACIFIC
USD/JPY rebounded from four-year lows and broke above 104.14 stopping the downward spiral. This is mostly supported by a stronger USD as well as an anticipated BoJ rate cut.