March 28, 2024

Businesses worldwide slowly reopen

LQDFX Forex news Blog | Businesses worldwide slowly reopen

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Investors left behind China-U.S. trade tensions and focused their interest on more stimulus in China and businesses worldwide which gradually reopened following a months-long lockdown.

Japan ended its state of emergency on Monday, while Britain said it will reopen thousands of shops next month. California has decided to reopen in-store retail businesses and places of worship following shutdowns in one of the most restrictive containment rules in the United States.

Also, the mood among German exporters recovered somewhat in May after a “catastrophic” April, the Ifo institute said on Tuesday.

However, some analysts warned markets might be too fast in pricing a quick recovery from the coronavirus slump that put millions of people out of their jobs and virtually halted activity in major sectors.

WHO warned countries where coronavirus infections decline that could face an “immediate second peak” if they let up on measures too early.

All eyes will be on the European Commission’s release of its recovery plan on Wednesday. Investors will gauge the progress of a Franco-German proposal for a 500 billion euro grants-based coronavirus recovery fund.

German government and Deutsche Lufthansa AG said Monday they have agreed on a 9 billion euro bailout deal. This is one of the biggest aid packages by a single country hatched so far in the pandemic-hit air travel sector.

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Forex – Businesses worldwide slowly reopen

Growing optimism about a global economic recovery from the COVID-19 pandemic supported riskier currencies. Investors shrugged off Sino-U.S. tensions to focus on more stimulus in China and a re-opening of businesses worldwide.

The dollar was down by 0.5% against a basket of currencies at 99.21.

Versus the Japanese yen, the dollar rose was flat at 107.65.

The trade-sensitive Australian and New Zealand dollars each rose more than 1% versus the U.S. dollar. The Aussie was last up 1.3% at 0.6626 an 11-week high. The kiwi also rose 1.3% to 0.6184, also an 11-week high.

The euro was last up 0.6% at $1.0960, having rallied to $1.0973, its strongest since Thursday.

Sterling traded up 1% at $1.2326, a two-week high. Against the euro, the recovery was more moderate, up 0.4% at 88.99 pence.

In commodity markets, gold edged down 0.3% to $1,723 an ounce.

Oil prices were supported by falling supplies as OPEC cut production and the number of U.S. Canadian rigs dropped to record lows for the third week running.

Brent crude futures rose 71 cents to $36.24 a barrel. U.S. crude gained $1.14 to $34.39.

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money