Brent crude has managed to rebound from its lowest level since 1999. The dollar saw a little changed against the yen.
Those gains are diminishing persistent investors’ concerns around the collapse in demand for oil. Moreover, major economies have been brought to a virtual standstill with stay-at-home rules. There are restrictions on business. Also, there is a limit on travel for limiting the spread of the coronavirus.
Countries run out of space to store the oil that they are not using. Thus, it could lead to further disruptions for commodities and other markets.
Later, on Thursday, the European Union officials will discuss the bloc’s response to the economic damage caused by the coronavirus.
Nevertheless, markets are wary. It is because it is uncertain how far the European Union governments will cooperate in financing the recovery from what is sure to be a deep recession.
The euro edged lower to $1.0807, ahead of the outcome of the meeting. Moreover, the common currency changed slightly at 87.77, against the pound.
To allow banks to finance themselves at the ECB, the European Central Bank has agreed to accept junk bonds as collateral. Thus, it must be a decisive factor for the euro. Nevertheless, investors wait for details on fiscal responsibility.
The pair of the dollar and yen are remaining stuck in a holding pattern. Thus, the dollar saw little change.
The United States dollar last traded at 107.83.
The oil turmoil rattles the forex market. Moreover, there was a rebound in crude prices from an unprecedented collapse. Nevertheless, its calmed markets only partially. The markets are unnerved by the massive drop in global demand led by a coronavirus. Thus, on Thursday, the dollar raised against the currencies of oil producers.
Coronavirus threatens the global demand for energy. Thus, the euro looks at policymakers for a fiscal response.
The euro held steady against the United States dollar.
- Trading Instrument