Let’s check the situation of the United States. The policymakers will most probably keep their promise to do whatever it takes to support the world’s largest economy. Global central banks launched massive stimulus measures to protect savings from the coronavirus pandemic. Thus, it scaled more than the three-year peak of 102.99. After that, the dollar weakened by more than 3%. Before a European Central Bank meeting on Thursday, the euro gained 0.43% to $1.0865.
Moreover, Gilead Sciences reports an encouraging update on a potential treatment for the coronavirus. After that, stocks surged. On Wednesday, the United States dollar fell. The novel coronavirus shut down businesses and battered the global economy.
Remdesivir, an experimental antiviral drug of Gilead, helped to improve symptoms in COVID-19 patients. The company claims that they were given medicine earlier than those who were treated later. Given that, businesses globally will get close to reopening, as optimism is growing. Thus, it reduced demand for the United States’ currency and boosted the appetite of risk.
The United States Situation
Joe Maminbo is a senior market analyst at Western Business Solutions in Washington. He said that they saw an increase in chatter about economies opening over the world. Thus, it suggested that a rebut of the global economy can happen sooner than later. That is a negative and positive risk for safe-haven assets.
The United States dollar fell against a basket of currencies 0.26% to 99.62. On Tuesday, it was above a two-week low of 99.44. The dollar of Australia is a proxy for global growth. Thus, it jumped 0.57% to $0.6527. it reached $0.6547, the highest since March 10.
Data showed that the economy of the United States contracted in the first quarter. Thus, the greenback dipped. The Department of Commerce made a statement. It said that the gross domestic product (GDP) fell at a 4.8% annualized rate in the January-to-March period.
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