November 26, 2024

Economies allow some business to resume

LQDFX Forex news Blog– Economies allow some business to resume

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More and more of the world’s biggest economies allow some people back to business as they take steps to reopen crucial industries.

EU heads of governments are scheduled to hold a video summit over how to tackle the economic fallout of the crisis on Thursday.

Spain, Italy, Austria, Denmark and the Czech Republic are lifting some lockdown measures. In Asia, where the pandemic originated, China and South Korea continue to ease restrictions on public life and work.

Britain is not considering lifting its lockdown. While leaders in Ireland and Canada have flagged long-lasting social distancing rules.

When to get back to work has become a huge debate in the United States. President Donald Trump is preparing to unveil new federal guidelines meant to begin the process of reopening the country.     

Yet that market optimism may be unfounded. Health experts are warning of a potential second wave of infections that could lengthen the time social distancing remains in place.

Risk appetite was mostly cautious. Data showed Japanese exports fell by their biggest margin in nearly four years. Oil prices weakened, reflecting a collapse in global demand.

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Forex – Economies allow some business to resume

Data that infection rates from the coronavirus outbreak have peaked or are approaching a peak would be expected to prompt traders to step back into currency markets.

The dollar’s early gains fizzled as investors squared positions before an EU summit this week on how to tackle the economic fallout. The greenback dipped into negative territory after being up as much as 0.3% on the day. It remains within striking distance of a three-year high of nearly 103 hit last month.

The dollar slipped 0.1% versus the euro but was up 0.1% on the Japanese yen. It last bought 107.71 yen and traded at $1.0867 per euro.

The New Zealand dollar was the only one to hold its own against the greenback, rising 0.6% to $0.6059. The nation said it will lower its alert level one notch next Monday allowing some businesses to resume.

Sterling slid on Monday as the death toll from the novel coronavirus increased. Officials said it was too soon to talk about easing the lockdown implemented to stop the virus spreading further.

Sterling fell 0.3% against both the dollar and the euro, trading last at $1.2468 and at 87.16 pence respectively.

Oil prices extended weakness on the back of sliding demand. Concerns that U.S. storage facilities will soon fill to the brim amid the coronavirus pandemic.

Crude oil futures fell on Monday, with U.S. futures touching its worst levels since 1999. Brent was down $1.12, or 4%, at $26.96 a barrel by 1008 GMT.

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money