Forex Today: Dollar falls, gold up amid upbeat COVID-19 data, Boris' ICU stay causing concerns

Yohay Elam FXStreet

Here is what you need to know on Tuesday, April 7:

UK Prime Minister Boris Johnson is in intensive care and receiving oxygen amid complications from COVID-19. The dramatic news has sent the pound lower after previous messages from the government aimed to calm the public. Foreign secretary Dominic Raab has taken over as the UK is set to reach the peak of the disease in the coming days.

Elsewhere, the market mood remains upbeat, with the dollar down and Gold resuming its rally. The precious metal is getting comfortable above $1,650.

Asian markets are on the rise and S&P futures are stable after a robust rally on Monday. Italy, Spain, France, and Germany continued reporting encouraging coronavirus figures in both the number of infections and deaths. Italian Prime Minister Giuseppe Conte refused to talk about easing restrictions, but exit strategies are being drawn across the continent.

More stimulus: Stocks also advanced in response to the White House seemingly supporting another stimulus package, including handing out more money to Americans as House Speaker Nancy Pelosi suggested.

Eurozone: German Chancellor Angela Merkel said the EU is in the most difficult moment since its establishment as the crisis triggers substantial economic damage across the old continent and leaders are at loggerheads around issuing mutual bonds. German and French economic data predating coronavirus is due out.

Global COVID-19 cases have topped 1.3 million and taken the lives of nearly 75,000. US cases top 360,000.

AUD/USD: The Reserve Bank of Australia has left the interest rates unchanged as expected and hinted it would taper down liquidity injections. AUD/USD has been on the rise in response.

Japan is entering a month-long state of emergency and imposing restrictions in several areas, including the capital Tokyo.

Oil is on the rise amid reports that the OPEC+ is getting closer to an agreement to cut production. Russia and Saudi Arabia are negotiating an accord that may also include other countries. A videoconference is scheduled for Thursday.

Cryptocurrencies have been consolidating their gains, with Bitcoin trading above $7,000.

More Explained: Which indicators matter in coronavirus times

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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