Forex Today: Dollar’s decline likely to continue despite risk-averse environment
|Here is what you need to know on Monday, March 30th:
- The coronavirus pandemic keeps taking its toll on the world’s economies. As one-third of the global population is in lockdown, most of them, extending measures until mid-April. US President Trump finally decided not to put US “hot spots” on quarantine, but instead issued a travel advisory urging New York, New Jersey and Connecticut residents to refrain from non-essential domestic travel for two weeks. Meanwhile, the number of COVID-19 cases in the US has surpassed 124,000.
- The American dollar plummeted Friday alongside Wall Street and government bond yields, without a particular catalyst. However, the expansion of the outbreak in the world’s largest economy is among the reasons.
- European and commodity-linked currencies soared to weekly highs, but because of the dollar’s weakness. There are no real reasons for those to appreciate, and the next directional moves will continue to depend on the greenback strength or weakness.
- The Japanese yen appreciated although gold consolidated, this last, finishing the week at around $1,625 a troy ounce.
- Crude oil prices bounced modestly ahead of the close but settled near the multi-year lows achieved this month.
- Worrisome news over the weekend showed that, in separated events, missiles had been shoot. Saudi Arabia reported ballistic missiles were intercepted on Saturday in the sky above Saudi Arabia’s capital Riyadh and the southern city of Jazan. Also, North Korea launched short-range ballistic missiles into the ocean off its east coast on Sunday.
- Bitcoin and Ethereum struggle to find a direction; Ripple stays positive
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