Dollar ends broadly lower as gain in U.S. stocks boost risk appetite
|Market Review - 09/06/2020 00:03GMT
Dollar ends broadly lower as gain in U.S. stocks boost risk appetite
The greenback pared initial gains made in Asia and Europe and ended lower across the board on Monday due to risk-on sentiment on gain in U.S. stocks (Dow hit fresh 3-month high of 27572 ) and market optimism on further easing of the coroanvirus related lockdown restrictions. Dollar tumbled against safe-haven Japanese yen and Swiss franc on decline in U.S. Treasury yields.
In other news, Reuters reported the coronavirus will cause global economic output to contract by 5.2% in 2020, the World Bank said on Monday, warning that its latest forecasts would be revised downward if uncertainty over the pandemic and business lockdowns persist for longer periods
Versus the Japanese yen, dollar met renewed selling at 109.69 in New Zealand and fell to 109.39 in Asian morning on broad-based jpy buying before rebounding to 109.58 in European morning but only to tumble to session lows of 108.24 in New York due to renewed usd's weakness as well as fall in U.S. Treasury yields.
The single currency went through a roller-coaster ride as despite initial recovery to 1.1319 in New Zealand, the pair retreated to 1.1282 shortly after European open on profit-taking before rebounding to 1.1316 but only to fall to session lows of 1.1269. However, price then bounced to 1.1318 in New York morning on usd's weakness and then swung broadly sideways.
Reuters reported the European Central Bank's aggressive stimulus measures in response to the coronavirus pandemic are proportionate to the risks faced by the euro zone economy, ECB President Christine Lagarde said on Monday.
The British pound went through a volatile session. Although cable rose from 1.2673 (Reuters) in New Zealand to 1.2729 ahead of Asian open, failure to penetrate last Friday's 2-1/2 month 1.2730 high triggered profit-taking and the pair fell to intra-day low of 1.2629 in Europe before climbing to fresh 2-1/2 month high of 1.2736.
Data to be released on Tuesday :
UK BRC retail sales, Australia NAB business conditions, NAB business confidence, ANZ job advertisements, Swiss unemployment rate, Japan machine tool orders, Germany exports, imports, trade balance, current account, France current account, trade balance, imports, exports, EU employment, GDP, and U.S. redbook, JOLTS job openings, wholesale inventories, wholesale sales.
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