Risk sentiment took baby steps and steadily improved this week on tentative signs that the pandemic is slowing in U.S. and European hotspots.
New York, the U.S. state most afflicted by the coronavirus, offered fresh evidence that the arc of the disease caused by the virus was flattening. However, some analysts remain cautious given so little is known about the virus.
The coronavirus first emerged in China late last year and has since spread around the world, infecting more than 1.5 million and claiming more than 90,000 lives.
Further, many nations continue to grapple with the massive economic damage caused by the outbreak.
U.S. consumer prices fell by the most in more than five years in March. Further decreases are likely as well. The novel coronavirus outbreak suppresses demand for some goods and services
Investors reacted negatively to early details of a supply-cut agreement between members of OPEC and its allies by selling crude futures. These moves suggested these cuts may not be enough to offset an expected drop in global demand. There are doubts that a deal between OPEC and its allies for a record oil supply cut would be enough to offset the collapse in global fuel demand.
START TRADINGForex – Baby steps for Risk sentiment this week
Currencies from oil-producing countries held onto gains against the U.S. currency. financial markets in Australia, Hong Kong, Singapore, Britain, and the United States are closed for the Good Friday holiday.
The dollar was on course for a weekly loss on Friday. The U.S. Federal Reserve’s massive new lending programme for small companies reduced safe-haven demand. Signs of a slowdown in coronavirus infections weighed too.
The Canadian dollar was higher against the dollar for the week, but further gains are in doubt.
The dollar traded at 0.9657 Swiss franc, down 1.1% for the week.
Further, the greenback last traded at 108.41 yen, unchanged for the week. Concern about an increase in coronavirus infections and the declaration of a state of emergency in Japan offset dollar selling.
The Australian dollar jumped by 6% against the greenback this week, highlighting easing stress in global markets.
Against the euro, the dollar last stood at $1.0941, on course for 1.3% weekly decline.
The pound pulled ahead against the dollar and the euro as markets breathed a sigh of relief. The British Prime Minister, Boris Johnson, left intensive care following his hospitalisation for COVID-19 symptoms.
The British currency held steady at $1.2465 on Friday, and headed for a 1.6% gain this week. Against the euro, sterling was on course for its third consecutive weekly gain.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money