Risk-off trading conditions support USD, Greenback strengthens overnight
The plunge in oil keeps markets on edge and maintaining a risk-off sentiment. In reaction to this, the USD strengthened against all peers outside of the Japanese yen while commodity currencies including the Norwegian krone, New Zealand kiwi and Australian dollar all fell. President Trump announced that he will sign an executive order that will temporarily suspend immigration in an attempt to contain the spread of the coronavirus.
April 21, 2020
EUR/USD 1.0834 GBP/USD 1.2278 USD/CAD 1.4215 AUD/USD 0.6263 USD/JPY 107.7500 USD/CNH 7.1068 USD/ILS 3.5592 USD/MXN 24.3778 USD/CHF 0.9712 USD/INR 76.8338
USDThe US dollar strengthened overnight as markets maintain risk-off sentiment. President Trump tweeted late Monday night that he would sign an executive order to temporarily suspend immigration in an effort to contain the spread of the virus.GBPSterling fell to lowest levels since April 8, declining 1%. The pound weakened on renewed concern around Brexit risks and poor jobless data.EUREUR/USD is trading lower on US dollar strength but stays around the 1.08 handle. If EUR/USD breaks below 1.08, the next level of support is at 1.0770.CADUSD/CAD trading above 1.42 as crude oil prices plunge and US dollar strengthens across the board. The currency pair hit a two-week high of 1.4265.ASIA/PACIFICReserve Bank of New Zealand Governor Adrian Orr stated that the central bank would re-evaluate the need for additional stimulus during its May review causing NZD/USD to move lower by over 1%. The Australian dollar also weakened almost 1% after comments from the Reserve Bank Governor Philip Lowe stating that national output and income is likely to experience its biggest contraction since the 1930s. USD/JPY dropped slightly, maintaining a range of 107.28 – 107.79.
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