Fed's Williams: COVID had an enormous shock on supply and demand

Eren Sengezer FXStreet

New York Federal Reserve President John Williams noted on Monday that the coronavirus outbreak had an enormous shock on supply and demand, as reported by Reuters.

Regarding the inflation outlook, "it's really hard to decipher what is an underlying or persistent factor versus a temporary factor," Williams added. "The Fed has to watch the data and continue to learn as the economy progresses."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its major rivals. As of writing, the US Dollar Index was up 0.13% on a daily basis at 92.22.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.