Forex Today: Dollar falls on risk appetite
|What you need to know on Tuesday, April 6:
The day started in slow motion, as most of Asia and Europe was on an extended Easter holiday. However, risk-appetite dominated the financial world in response to upbeat US employment data released last Friday. The optimistic mood accelerated with Wall Street’s opening, as major indexes soared to all-time highs. The dollar edged lower against all of its major rivals.
The EUR/USD pair recovered the 1.3800 threshold while GBP/USD hovers around 1.3900 at the end of the day. The advances are shy at the time being, not enough to confirm steady dollar losses in the near-term.
UK Prime Minister Boris announced the kingdom would continue easing out of lockdown from April 12, as they will reopen shops, outdoor dining for restaurants and bars, hairdressers, zoos, and gyms. He also added that it’s too soon to say whether international summer holidays would be possible this year. The government will decide on non-essential international travel on May 17.
Commodity-linked currencies also gained vs the greenback, with the AUD/USD pair trading around 0.7650 ahead of the RBA’s monetary policy decision. The USD/CAD par fell towards 1.2500 despite plummeting crude oil prices.
Meanwhile, USD/JPY tested bulls’ determination around 110.00. Soaring equities and stable US Treasury yields limited the decline.
Gold remained lifeless, ending the day just marginally lower at $ 1,726 a troy ounce.
Crude oil prices came under selling pressure after the OPEC+ decided to gradually increase output between May and July this year, starting with 350,000 barrels per day. WTI plummeted, ending the day at $ 58.60 a barrel.
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