The U.S. dollar is a touch lower again this morning but the massive bleeding from the past two weeks seems to be clotting somewhat.
Overview
Nevertheless, the greenback is headed for its eighth straight day of losses, which would represent its longest losing streak since 2011.
While the dollar is slightly stronger against Euro and sterling, the greenback is under pressure as global equities continue to soar. American stocks were shot out of a cannon on Friday following a stellar jobs report, despite a footnote that called into question the veracity of the data. The party looks to continue today with futures solidly in the green. Boeing stock is up 10% in pre-market trading, representing half of the gains expected in the DOW at the open.
There is no major economic data on today’s slate so expect traders to continue to take their cues from the prevailing risk sentiment. Market participants are also gearing up for the Federal Reserve Open Market committee’s policy decision on Wednesday afternoon. While the Fed has been aggressive in their response to COVID, we do not expect the central bank to increase its monetary stimulus this week.
What to Watch Today…
- No major events scheduled for today
Complete Economic Calendar can be found here.
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SEK
The Norwegian krone, Swedish krona and other commodity-based currencies were the biggest winners versus the U.S. dollar overnight as the price of oil peaked higher. As expected, OPEC+ announced it would extend its agreement to curb production.
At the time of writing, the price of crude has turned slightly lower. Saudi Arabia threw cold water on the oil rally after it signalled it would not continue with additional, deeper cuts after June. The recent developments may eat into NOK’s gains.
NZD
The New Zealand dollar rose half a percent against the U.S. dollar, benefiting from general risk-on sentiment and a rise in the price of commodities. The island nation is also getting a boost from news that the nation now has zero active cases of Covid-19.
New Zealand is moving towards ending social distancing requirements which will be a boon to their economy. The “kiwi” is at its strongest level since the end of January.
