On Monday, the United States dollar edged down. This is because optimism concerning the opening of economies hit by the coronavirus pandemic boosted appetite of risk. It lifted certain commodity currencies, for example, the Norwegian krone.
There are fresh trade tensions between the United States and China. Despite that, the gradual easing of lockdowns fed optimism around global markets.
Adam Cole is a chief currency strategist at RBC Capital Markets. He said that overnight markets are quickly becoming risk-on.
The index for the United States dollar decreased to 100.28 by 0.05%. Nonetheless, rising prices of oil lifted the Norwegian krone. It was supported by recovery signs in output cuts and demand.
Against the United States dollar, the krone jumped by 0.6% to 10.1860. Moreover, other commodity currencies rose as well. Gold lifted by more than 1%, to its highest value in over seven years.
Stock gains lifted other major currencies, for instance, the Australian dollar.
The Australian dollar was at $0.6446, up by 0.5%—the euro rose by 0.05% to $1.0827.
Against the yen, the United States dollar currency lost around 0.2% at 107.20 per dollar. This happened after data showed that Japan slipped into a recession for the first time since 2015. Policymakers braced for the worst postwar slump for the nation.
Investors were also looking at Purchasing Managers’ Index surveys across significant economies for insight for the outlook later this week.
The British sterling had a week-long deadlock over a post-Brexit trade deal with the European Union. Moreover, there was heightened attention paid to the possibility of negative rates. Therefore, the sterling stood at 89.35 pence per euro and was under pressure at $1.2107.
Andy Haldane is the Bank of England’s chief economist. Haldane said that they could not rule out emergency measures. This was during the interview published on Saturday with the Telegraph newspaper.
It is the current news of the market.
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