US dollar on track for second week of gains
European leaders failed to agree on a plan to protect the region’s economy from the impact of the coronavirus. In reaction to this, markets shifted to risk-off supporting the US dollar. EUR/USD fell to one-month lows with US equities trading mixed and US treasuries stabilized. The US bill for a $484 billion package was passed by the House of Representatives reloading funding for small businesses and providing support for hospitals.
April 24, 2020
EUR/USD 1.0792 GBP/USD 1.2346 USD/CAD 1.4070 AUD/USD 0.6369 USD/JPY 107.5300 USD/CNH 7.0910 USD/ILS 3.5174 USD/MXN 24.8437 USD/CHF 0.9750 USD/INR 76.4563
USDUS dollar continues to hold higher, strengthening for a fifth day against its peers. News from pharma company Gilead suggested that the drug developed to cure coronavirus was a failure spurring demand for the US dollar and other safe haven assets.GBPFears of an extended virus lockdown and poor retail sales pushed sterling lower, on-pace for its first weekly drop since earlier this month. UK retail sales fell the most for the month of March since records began.EUR
EUR/USD fell below the 1.08 handle hitting a one-month low of 1.0727. Christine Lagarde, President of the European Central Bank, said to euro-area governments that the region’s economy could shrink by as much as 15% as a result of the pandemic.CADUSD/CAD fell 0.2% as oil prices rebound. WTI June future contracts strengthened $0.43 to $16.93.ASIA/PACIFICThe Japanese yen remains firmly in the 107-108 trading range. The currency pair has risen slightly this week (0.1%). AUD and NZD dropped on news doubting that the drug developed to cure coronavirus would work.
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