The Australian dollar recovered from an early fall and rose to $0.6546. The Australian dollar is often traded as a proxy for risk because of its close ties to global commodities and the economy of China. Moreover, across the Tasman Sea, against its United States counterpart at $0.6137, the New Zealand dollar steadied.
Jacinda Ardern is the Prime Minister of New Zealand. She said that she would ease more restrictions on Thursday. Thus, sentiment for the kiwi will most probably improve.
Ohio, California, and Michigan are three important states for United States manufacturing. They take steps for allowing factories and more businesses to resume work in a boost to sentiment.
Moreover, currency futures are suggesting that the United States dollar can continue to edge higher.
Reuters and United States Commodity Futures Trading Commission released data on Friday. According to that data, speculators trimmed net short positions in the United States dollar to $9.148 billion in the week ended May 5 from $10.23 billion the previous week.
The United States and Others
On Monday, the pound saw little changed at $1.2419. Moreover, the sterling held steady at 87.32 against the euro.
On Sunday, in a televised address, Johnson announced a limited easing of coronavirus restrictions. Those restrictions have shuttered much of the economy for weeks. Thus, he encouraged some people to return to work.
Moreover, the government wants the rest of the United Kingdom to take the same approach. Nevertheless, there were immediate divisions. For example, Northern Ireland, Wales, Scotland say that they were sticking with the existing message of stay-at-home.
Moreover, over its handling of the pandemic, the government of Johnson faced criticism. Britain’s death toll is around 32,000. Thus, it is the second-highest in the world, behind the United States.
Nevertheless, some traders are saying that the uncertainty concerning the virus still possesses risks for financial markets.
