Euro US Dollar Steady amid Trump’s Claim
The Euro to US Dollar exchange rate held steady this morning, trading around $1.09 on forex. The USD failed to gain on the single currency after President Donald Trump claimed total authority to lift the lockdown.
Investors are taking a cautiously optimistic view of the coronavirus pandemic’s progress with hopes to drift out of safe haven.
The US Dollar Index stood at 99.265, fell 0.1%, while EUR/USD rose 0.2% to 1.0929. Moreover, GBP/USD rose 0.4% to 1.2557. USD/JPY fell 0.1% to 107.69.
The Euro Steadies as coronavirus cases ease in Italy and Spain. The Euro has continued to benefit from a sustained decrease in the number of Covid-19 cases throughout Europe’s worst-hit nations.
Yesterday, death toll fell to 431 in a day, which was the lowest 24-hour period since 19th March. Furthermore, the number of patients admitted to intensive care wards had fallen for its ninth consecutive day.
The COVID-19 pandemic continues to hammer the U.S. economy, dragging down employment, FX market and the nation’s manufacturing sector. The same concerns weigh on the US Dollar. However its president plans to lift the nation’s lockdown despite conflicting governors and legal experts.
The number of confirmed cases of the coronavirus continue to soar, and is rapidly approaching two million globally. The focus has turned more towards when countries can reopen their economies.
Optimism on US Dollar, Euro and other Nations
The Governor of New York, Andrew Cuomo, was optimistic saying that the worst is over for NYC. Nobody has been here before, nobody has all the answers, he said. Addressing public health and the economy, which one is first, they’re both first, he added.
Richard Clarida of the Federal Reserve was optimistic that the Fed would not be required to support the economy indefinitely.
USD/EUR exchange rate begins to rise with further indications of hope for the world’s largest economy.
The US dollar has also suffered from a moderate sell-off after Chinese trade data beat forecasts last month. This boosted risk-sentiment as the world’s second largest economy continues to show signs of improvement from the virus impact.
Meanwhile, Austria is beginning to ease lockdown restrictions along with other countries to recover their economies. This has resulted to single currency investors becoming increasingly optimistic about the Eurozone’s economy as the coronavirus begins to slow.
In FX news, the EUR/USD exchange rate was held back by fears that Eurozone will soon be facing a recession. It will remain sensitive to coronavirus developments with any further signs of Europe’s death toll decreasing. In places like Spain and Italy, it could boost the single currency.