March 29, 2024

Virus fears return to the forefront

LQDFX Forex news Blog– Virus fears return to the forefront

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Virus fears about the economic damage returned to the forefront as the USA overtakes China as the country with the most infections.

Trillions of dollars’ worth of stimulus efforts by governments and central banks helped temper a rout in global markets triggered by the coronavirus pandemic.

An unprecedented jump in U.S. jobless claims on Thursday underscored the coronavirus’s impact on the economy.

Leaders of the Group of 20 major economies pledged on Thursday to inject over $5 trillion into the global economy. The aim is to limit job and income losses from the coronavirus and “do whatever it takes to overcome the pandemic.”

The leaders showed more unity than at any time since the G20 was created during the 2008-2009 financial crisis.

On the contrary, EU leaders failed to agree on coordinating their response to the crisis. French President Emmanuel Macron said the survival of the European project was at stake.

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Forex – Virus fears return to the forefront

Currency markets have been volatile. Last week, the dollar index racked up its biggest weekly gain since the financial crisis.

The dollar gained 0.49% against a basket of currencies but is on track for its biggest weekly decline in more than a decade.

The dollar was headed for steep weekly declines against the Swiss franc, pound, and euro. The U.S. currency’s fall after two weeks of gains suggests the Fed’s efforts to relieve a crunch in the dollar funding market are working.

Against the yen, the dollar fell 0.71% on Friday to 108.80, on pace for a 2.2% weekly decline. Japanese investors and companies repatriated funds before their fiscal year ends next week.

The euro fell 0.66% against the greenback to $1.0955 but remained on course for around a 3% gain over the dollar this week.

The risk-sensitive Australian dollar edged up around 0.2% apiece as it consolidated the week’s gains.

The British pound rose on Friday as investors became more confident that the US economic stimulus could alleviate some of the coronacrisis impact.

Sterling was up 0.4% at $1.2253, having touched a near-two-week high of $1.2304. It gained more against the euro, rising by 0.8% to 89.80 pence.

U.S. crude rose 2.04% to $23.06 a barrel. Brent crude rose 0.84% to $26.56 per barrel. Energy markets have been caught in a tug-of-war between hopes for stimulus spending and worries about excess oil supplies.

Gold, normally bought as a safe haven, was slightly lower. Spot gold fell 0.34% to $1,626.01 per ounce.

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money