Investors are cautiously optimistic concerning the results of a drug trial. Moreover, there is the United States President Donald Trump’s plan for reopening the economy. It has regained some appetite for risk. Thus, on Friday, the dollar ticked lower.
Overnight, by a media report, the sentiment was boosted, detailing encouraging partial data. Data came from experimental drug trials on severely ill COVID-10 patients at a hospital of the University of Chicago.
Moreover, there is news that Trump is planning to reopen the world’s largest economy. Thus, investors took it as a positive sign. Nevertheless, Thursday’s jobless data showed a record 22 million Americans sought unemployment benefits in the last month.
Thus, the overnight moves toppled the dollar. It has closely tracked sentiment of risk through the coronavirus crisis, with the dollar index last down 0.16%, from a week high. While the S&P 500 index rallied 1.3%, other safe-haven assets like Treasury yields were lower.
Moreover, against the euro, the Canadian dollar, and the British dollar, the greenback also fell. Nevertheless, it strengthened against the Swiss franc and the Japanese yen, other safe-haven currencies.
Joe Manimbo is a senior market analyst at Western Union Business Solutions. He said that a stronger risk appetite put a brake on the dollar’s rally.
Moreover, he added that the Market’s heightened sensitivity to all things coronavirus sent United States stocks soaring. It was flying at the expense of the safe bet greenback. Nevertheless, sustained optimism was challenging at best, which suggests any decline in the dollar might only prove temporary.
For a small weekly gain, the dollar remains after the safe-haven rally this week on dismal data from the United States on Wednesday. Moreover, on Thursday, China’s economy report contracted in the first quarter. Since the country began publishing the data in 1992, it is the first quarterly contraction.
It is the leading news for today.
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