The United States dollar is tracking the greenback. Thus, the dollar gained 0.34% to 100.2557 by 4:59 AM GMT (11:50 AM ET).
At National Australia Bank, Ray Attrill is head of the forex strategy. He told CNBC that the United States dollar and risk aversion are going hand in hand.
He adds that the improvement was based on less-bad statistic outcomes from the world’s various parts. Nonetheless, their view is that the markets will be choppy. Attrill also said that they couldn’t expect an uninterrupted flow of only good or only bad news.
Both New York City in the U.S. and the United Kingdom, overnight, announced their highest daily death toll. Nonetheless, there was a declining number of cases at the beginning of the week. The New York governor Andrew Cuomo reported 5.489 deaths overnight.
The United States and Economists
Investor flock to safe havens amid increasing numbers of fatalities from the COVID-19 pandemic. Thus, on Wednesday, the United States dollar reversed its losses.
Shinzo Abe, the Japanese Prime Minister, officially announced a state of emergency overnight. Thus, the pair of USD/JPY was down 0.11% to 108.83.
Analysts and economists expect that the United States dollar will get back on track soon.
Britain’s Prime Minister, Boris Johnson, entered the second day of extensive care for treating the virus. Thus, the pair of GBP/USD lost 0.16% to 1.2317.
S&P declined its outlook on Australia’s sovereign AAA rating from stable to negative. So, the pair of AUD/USD slid 0.61% to 0.6129.
The pair of NZD/USD was down 0.37% to 0.5952. The pair of USD/CNY gained 0.35% to 7.0671.
Joe Capurso is the currency analyst at Commonwealth Bank of Australia. He told CNBC that while the virus’s curse flatters, the economic effects of coronavirus will remain for years.
He added that economies must re-open. Moreover, he thinks that some businesses won’t re-open. Unemployment needs some years to recover. Thus, Capurso assumes that the dollar and yen will re-strengthen.
Let’s hope that situation in the United States will get better.
- Trading Instrument