Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

FOREX-U.S. dollar drifts higher as optimism ebbs on coronavirus crisis

Published 08/04/2020, 15:31
Updated 08/04/2020, 15:36
DX
-

* Euro falls as EU finance ministers fail to agree further support
* Talks put on hold until Thursday
* Aussie dollar recovers after ratings outlook cut
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds new comment, FX table, new analyst comment, updates prices; changes byline, dateline; previous
LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 8 (Reuters) - The U.S. dollar edged higher on Wednesday in choppy trading, attracting
safe-haven bids, as optimism faded that the coronavirus crisis may be nearing a peak and investor concerns
remained over the economic fallout of the pandemic.
The greenback's firmer tone came after U.S. equities ended lower on Tuesday. Wall Street shares traded
higher in morning trading on Wednesday, but not many analysts were betting they would remain so by the end
of the day.
"Optimism has eased and it has to. It's a 50% world. Uncertainty will remain a part of our lives for
the next two months," said Juan Perez, senior currency trader a Tempus Consulting in Washington.
"There's really a fundamental lack of answer to an important question and that is: are we testing
enough? And the answer is no. So you're not going to get a whole lot of consistency right now," he added.
In mid-morning trading, the dollar index was flat to slightly higher on the day at 99.993 =USD .
The dollar has for a month very closely tracked risk appetite as investors and businesses fearing the
worst have rushed to the world's reserve currency.
Against the yen, the dollar inched higher to 108.79 yen JPY=EBS .
The euro was slightly lower on the day at $1.0883 EUR=EBS , weighed down by the failure of European
Union finance ministers to agree on further support for their coronavirus-hit economies. The impasse
spooked bond markets and sent shorter-dated Italian yields spiking higher. GVD/EUR
The talks, which are trying to agree a package of measures for governments, companies and individuals,
were suspended until Thursday. A feud between Italy and the Netherlands over what conditions should be
attached to euro zone credit for governments was blocking progress, sources said. Sterling gained 0.4% against the dollar to $1.2395 GBP=D3 .
The Aussie AUD=D3 , which fell in early European trading after ratings agency S&P cut the outlook for
its sovereign AAA rating from stable to negative, clawed back losses and turned positive on the day.
Still, some analysts were already starting to look at the potentially negative longer term
implications for the dollar of the extraordinary stimulus measures launched by Washington and the U.S.
Federal Reserve to lessen the economic damage caused by the pandemic.
"If you assume that COVID-19 is tackled by the end of the year ... in 2021 we have fiscal deficits,
balance sheet expansion, and the supply of dollars through other measures - it's definitely a very strong
background for a weaker dollar," said MUFG's Derek Halpenny.

========================================================
Currency bid prices at 10:09AM (1409 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0879 $1.0889 -0.09% -2.94% +1.0902 +1.0831
Dollar/Yen JPY= 108.7600 108.7000 +0.06% -0.09% +109.0900 +108.5200
Euro/Yen EURJPY= 118.33 118.44 -0.09% -2.95% +118.6900 +117.9300
Dollar/Swiss CHF= 0.9701 0.9692 +0.09% +0.22% +0.9743 +0.9689
Sterling/Dollar GBP= 1.2377 1.2337 +0.32% -6.65% +1.2396 +1.2290
Dollar/Canadian CAD= 1.4038 1.3993 +0.32% +8.10% +1.4081 +1.3988
Australian/Doll AUD= 0.6187 0.6166 +0.34% -11.86% +0.6214 +0.6117
ar
Euro/Swiss EURCHF= 1.0553 1.0560 -0.07% -2.76% +1.0568 +1.0551
Euro/Sterling EURGBP= 0.8787 0.8829 -0.48% +3.94% +0.8835 +0.8778
NZ NZD= 0.5985 0.5974 +0.18% -11.15% +0.6004 +0.5941
Dollar/Dollar
Dollar/Norway NOK= 10.2662 10.2641 +0.02% +16.95% +10.3771 +10.2370
Euro/Norway EURNOK= 11.1690 11.2018 -0.29% +13.53% +11.2702 +11.1549
Dollar/Sweden SEK= 10.0429 10.0495 -0.25% +7.44% +10.1186 +10.0147
Euro/Sweden EURSEK= 10.9268 10.9547 -0.25% +4.37% +10.9845 +10.9060

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Tracking the spread of the novel coronavirus https://graphics.reuters.com/CHINA-HEALTH-MAP/0100B59S39E/index.html
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.