Forex Today: Demand for the greenback cooled
|Here is what you need to know on Friday, March 27th:
- The dollar accelerated its decline, ending the day lower against all of its major rivals, despite the market’s sentiment oscillated throughout the day. Nevertheless, demand for the greenback has receded after the US Federal Reserve announced unlimited QE while the US Congress agreed on a relief bill that will be passed through the Congress in the next few days.
- The Bank of England had a monetary policy meeting, but, as expected, it left the current policy unchanged. Policymakers opened doors for additional stimulus. GBP/USD settled above 1.2200.
- US unemployment claims for the week ended March 20 soared to 3.28 million, a historical record, as the coronavirus outbreak forced to change rules. The outrageous number didn’t trigger much of a market reaction but weigh on investors’ mood. The EUR/USD pair reached the 1.1050 price zone.
- Gold prices were up, with spot reaching $1,642 a troy ounce, although easing ahead of the US close amid persistent demand for equities. Wall Street closer firmly higher despite data, reverting the bearish trend. Uncertainty, however, remains high and nothing could be taken for granted.
- Crude oil prices came under selling pressure, amid market talks suggesting demand for the black oil could slide over 20% due to the coronavirus crisis.
- US Treasury Secretary Mnuchin repeated that it’s for the ‘best Interest’ To keep markets open, but added that could consider limiting trading hours despite not being his preference.
- Bitcoin bulls failure to gain momentum builds the case for another fall
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