The market mood was lifted after US President Donald Trump announced a three-stage plan to re-open the US economy and STAT news cited that Gilead Sciences' experimental drug Remdisivir is showing promising results to fight coronavirus.
In light of the recent encouraging coronavirus news, markets ignored the sharp contraction in the Chinese Q1 GDP and mixed retail sales and industrial production for March.
The return of risk appetite, reflective of the rally in the Asian stocks, Treasury yields and US equity futures, dulled the safe-haven appeal of the US dollar across the board. The big surge in the US Jobless Claims also added to the greenback’s correction.
Amid risk-on market profile, gold prices dropped to test the $1700 mark while oil prices fell back below $20, down over 1%.
Across the fx space, the kiwi outperformed, with strong gains on the 0.60 handle while AUD/USD consolidated the bounce to 0.6383. USD/CAD attacked the 1.4000 level amid broad dollar weakness.
Meanwhile, USD/JPY turned lower from above 108.00 but losses remained capped amid risk-on. EUR/USD headed back towards 1.0900 while the cable attempted a recovery above 1.2500.
Main topics in Asia
US President Trump: States that have met the criteria to start phase 1 can begin tomorrow
S&P 500 Futures jump above 3.0% as Gilead’s Remdisivir, US Pres. Trump propel risk-tone
Gilead: Expect data from phase-3 study available end of April
China reports zero new coronavirus deaths in Mainland on April 16 vs zero deaths a day earlier
Fed’s Kashkari: Staged approach to reopening the US economy makes sense – Fox
G4 central bank balance sheets expand to 40% of GDP
China’s GDP contracts 6.8% YoY in Q1 vs. -6.5% expected, AUD/USD little changed
China’s NBS: Economy facing rising pressures from coronavirus epidemic
Japan’s Nishimura: Expansion of state of emergency to have huge economic impact in short-term
China’s NBS: Will step up support measures
USD/KRW Price Analysis: South Korean won rallies hard despite uptick in jobless rate
Key focus ahead
With the Chinese data dump out of the way, Friday is a thin-showing on the economic data front on both sides of the Atlantic, with the Eurozone Final Consumer Price Index (CPI) data due on the cards at 0900 GMT.
The US docket is data empty and therefore, all eyes will be on the coronavirus-related news and dollar dynamics. Meanwhile, the sentiment on the global markets will also play a pivotal role, with the stage-1 of the US economy re-opening plans to commence later on today.
For oil traders, the Bakers Hughes US Oil Rig Count data, dropping in 1700 GMT, will grab some attention.
EUR/USD: Better bid as Gilead coronavirus drug offers hope
EUR/USD has erased a major portion of losses seen on Thursday. Dollar is being offered on promising signs for coronavirus treatment. Light data docket leaves the pair at the mercy of the broader market sentiment.
GBP/USD benefits from risk reset, coronavirus is the key
GBP/USD defies the previous two-day losing streak, despite the latest pullback. The US dollar trims earlier gains amid the recovery in risk sentiment. The UK extends lockdown by at least three weeks, no longer business as usual with China.
Gold Price Analysis: Bull flag or rising wedge breakdown?
Gold's 4-hour chart shows a rising wedge and a bull flag pattern. The S&P 500 futures are flashing green and signaling a risk-on environment. The yellow metal could witness a rising wedge breakdown.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
How will US Dollar react to Q1 GDP data? – LIVE
The US' GDP is forecast to grow at an annual rate of 2.5% in the first quarter of the year. The US Dollar struggles to find demand as investors stay on the sidelines, while waiting to assess the impact of the US economic performance on the Fed rate outlook.
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.