The dollar fell as investor risk appetite rose, boosted by continued U.S. Federal Reserve action to battle economic devastation caused by the pandemic as well as potential treatments that the World Health Organization said seemed to be limiting the severity of the COVID-19 respiratory disease.
The euro was up 0.42% against the U.S. currency at $1.0851 while the British pound is trading a little higher to 1.2290 levels currently. USD/JPY remains trapped in a narrow range on the 107.00 handle as markets remain risk-averse amid fears of another wave of the coronavirus outbreak, trade war.
The overall risk mood so far today is more tepid, with US futures having overcome earlier losses to sit slightly higher on the session currently. S&P 500 futures are up by 0.3%, after having been down by around 0.8% in earlier trading.
Oil prices rose after OPEC’s de facto leader, Saudi Arabia, said it would increase supply curbs in June, while other members of the oil-producing group said they want to extend the deep cuts reached in April for a longer period than originally agreed. Brent crude advanced 1.01% to $29.93 a barrel, while U.S. crude was up 6.75% at $25.77 per barrel.
Gold rose on expectations of more stimulus from the U.S. Federal Reserve to support an economy battered by coronavirus-induced restrictions, while an easing dollar lent further support. Spot gold rose to $1,703 per ounce.
In the European session, Eurozone March industrial production data will be released at 09:00 GMT, followed by ECB’s Chief Economist Philip Lane speech at 11:00 GMT.
In the NA session the focus shifts on Fed Chair Jerome Powell’s scheduled speech at 13:00 GMT. Ahead of the speech, at 12:30 GMT, the US PPI data may offer fresh incentives. EIA Crude Oil stockpiles report at 14:30 GMT will be also eyed.
US Dollar on the backfoot Amid Talk of Negative Rates by Fed – Focus on Powell’s Speech
Published on 2020-05-13 08:14
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