Forex Today: Dollar loses momentum as yields ease
|What you need to know on Wednesday, April 7:
The greenback seesawed between gains and losses throughout the first half of the day but resumed its decline during US trading hours. Weakening US Treasury yields weighed on the greenback as the yield on the benchmark 10-year Treasury note fell to 1.65%.
The EUR/USD pair advanced to 1.1870, its highest in two weeks. The pound lagged, unexpectedly falling against the greenback towards the 1.3810 region after hovering around 1.3900 at the beginning of the day.
The aussie advanced against its American rival, but the Canadian dollar remained pressured. Gold moved further higher, settling above $ 1,740 a troy ounce, while crude oil prices eased after the US Energy Information Administration raised the forecast for 2021 world oil demand growth by 180,000 barrels per day (bpd) to 5.5 million bpd. For 2022, the EIA lowered its forecast for world oil demand growth by 180,000 bpd to 3.65 million bpd.
USD/JPY and USD/CHF edged lower, undermined by falling government bond yields.
The International Monetary Fund upgraded its global economic growth forecast to 6.0% from 5.5% in January but warned about widening inequality and a divergence between advanced and developing economies.
The head of the European Medicines Agency’s vaccines strategy said there is a link between the AstraZeneca coronavirus vaccine and rare blood clots, but reiterated that the benefits of the shot in protecting against the coronavirus outweigh any risks. Later in the day, the agency denied having found a causal link and said that the review is ongoing.
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