Forex Today: A bit of relief, but dollar still leads
|Here is what you need to know on Friday, March 20th:
- The EUR/USD pair fell to its lowest in almost two years, pricing at 1.0654 and settling not far above this last. Despite ECB’s QE and better performance of European and American equities, speculative interest continued to demand the safe-haven dollar.
- The Bank of England had an emergency meeting and announced a rate cut to 0.10% and an extension of QE worth £200 billion. The UK government announced its preparing to put London in lockdown, and even mobilizing military personnel to support civil authorities as part of a new “Covid Support Force.” PM Johnson is now moving to slow the spread of the virus, although his softer approach in the previous week, took its toll on the Pound. GBP/USD closed US session in the red, just above 1.15.
- The dollar’s demand and the better performance of equities sent USD/JPY to its highest since last February. The pair trades at around 110.60, despite US Treasury yields, retreated modestly.
- The AUD/USD peaked at 0.5964 and bottomed at 0.5506, a wide intraday range amid RBA’s decision, employment data, and persistent demand for the greenback. Volatility indicates hesitating sellers.
- Crude oil prices recovered up over 20% the barrel, although considering, the latest slump, the advance is moderate. WTI settled above $25.00 a barrel.
- Crypto Today: Bitcoin bulls have revived with $6000 the gateway to a recovery
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