Fx: USD Pacing for Weekly Loss on Fed ‘Big Bang’ Lending Program, Virus Fear Fading

Fx: USD Pacing for Weekly Loss on Fed ‘Big Bang’ Lending Program, Virus Fear Fading

$USD

Last time I looked, USD was on pace for a weekly loss Friday as the Fed’s massive new Big Bang lending program for small companies and sa slowdown in coronavirus infections reduced safe-haven demand.

The GBP pulled ahead against the dollar and the euro as markets breathed a sigh of relief after British PM Boris Johnson left intensive care following his hospitalisation for COVID-19 symptoms.

Currencies from Crude Oil-producing countries also held gains Vs USD, but the outlook remains uncertain on doubts that a deal between OPEC+ for a record supply cut would be enough to offset the collapse in global fuel demand.

Risk sentiment has steadily improved on the week on signs that this health crisis is slowing in the US and EU, but some analysts remain cautious given so little is known about the virus and as many nations continue to struggle with the huge economic damage caused by the outbreak.

The Fed has taken a lot of different measures, but the end result is a large increase in the supply of USDs.

Positive news about the virus reduces the kind of panicked repatriation into USDs that we saw earlier this year. The end result is gradual USD weakness.

Vs the euro EUR=EBS, the dollar last stood at $1.0926, on course for 1.2% weekly decline.

USD traded at 0.9660 Swiss franc CHF=EBS, down 1% for the week.

Trading is subdued on the day as financial markets in Australia, Hong Kong, Singapore, Britain, and the United States are closed for Good Friday.

The Buck last traded at 108.49 yen JPY=EBS, unchanged for the week as concern about an increase in coronavirus infections and the declaration of a state of emergency in Japan offset dollar selling.

On the Chinese Mainland, the RMB Yuan CNY=CFXS headed for a 0.9% weekly gainer Vs USD, its biggest since February 2019 as China continues to report a decline in new coronavirus cases.

The Aussie AUD=D3, which is highly sensitive to risk sentiment because of Australia’s dependence on China and the global commodities trade, rose 5.6% Vs the Buck this week, highlighting easing stress in global markets.

Sterling GBP=D3 held steady at $1.2459 Friday, and headed for a 1.6% gainer this week. Against the Euro EURGBP=D3, sterling was on course for its 3rd consecutive weekly gainer.

The Loonie CAD=, the Norwegian crown NOK=, and the Russian ruble RUB= were all higher Vs USD on the week.

CURRENCY PAIRS

  • USD
  • EUR
  • JPY
  • GBP
  • CHF
  • AUD
  • CAD
  • CNY
  • HKD
  • RUB
  • SEK
CurrencyLastChangeChange %Time
EUR0.9143-0.0005-0.0547%12:40 PM +07
JPY108.4000-0.0600-0.0553%12:29 PM +07
GBP0.8022-0.0004-0.0498%12:41 PM +07
CHF0.96660.00090.0932%12:30 PM +07
AUD1.5760-0.0008-0.0507%12:39 PM +07
NZD1.64310.00080.0487%12:39 PM +07
CAD1.3950-0.0023-0.1646%12:39 PM +07
DKK6.82930.00090.0132%12:30 PM +07
NOK10.22100.01310.1283%12:30 PM +07
CNY7.0317-0.0111-0.1576%12:39 PM +07
SEK9.95260.00580.0583%12:30 PM +07
SGD1.4125-0.0040-0.2824%12:39 PM +07
MXN23.71610.15610.6626%12:39 PM +07
RUB73.9864-0.1702-0.2295%12:30 PM +07

Have a happy healthy Easter and Passover weekend, stay home, Keep the Faith!

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