Let’s check the market. On Thursday, the Federal Reserve announced a $2 trillion program. It is to offer loans to small and mid-sized businesses and local governments. It is the latest step to backstop the United States economy as the country is fighting the crisis of the coronavirus.
The Federal Reserve slashed rates of interest to zero, increased dollar liquidity, and restated quantitative easing. Those steps were to hit a shortage in money markets and left the dollar in the grip of bears in the spot market. The U.S. state, New York, most afflicted by the coronavirus, offered fresh evidence that the arc of the disease was because the virus was flattering.
The declaration of emergency in Japan offset the dollar selling. Moreover, there are concerns about the coronavirus infections. Thus, the greenback was unchanged for the week and last traded at 108.51 yen.
Late last year, the coronavirus first emerged in China. Since then, it has spread in the world. It is claiming more than 89,400 lives and infecting more than 1.5 million.
The United States and Pound
The United States is taking hard steps to battle with the coronavirus.
The Australian dollar is susceptible to risk sentiment. It is because of Australia’s dependence on China. One of the reasons is also a global commodities trade. Highlighting easing stress in global markets, it jumped by 5.5% against the dollar this week.
On Friday, the pound held steady at $1.2465. This week, it headed for a 1.6% gain. The sterling was on course for its third consecutive weekly gain against the euro.
On Sunday, the British Prime Minister became the first world leader who was admitted to the hospital. He had a persistent symptom of COVID-19. Thus, the illness was due to the novel coronavirus.
The United States dollar has drifted lower due to less safe-haven demand. Boris Johnson’s health condition caused a hit to the pound. Nevertheless, recently, it has recovered.
This is the leading news of the market.
- Trading Instrument