The U.S dollar is down across the board as risk appetite returned and limited demand for the safe-haven currency.
Overview
Despite raised eyebrows from health officials, talk has once again moved towards re-opening states and other countries. New York registered the lowest daily death count in a month and Governor Cuomo detailed a cautious approach to reopening some sectors in the middle of May.
The Dallas Fed will release its regional manufacturing print at 10:30 a.m. On Wednesday, the Federal Reserve will conclude its scheduled meeting. The central bank announced unprecedented stimulus between scheduled meetings to combat the effects of Covid-19, so many analysts do not expect any further announcements from the Fed this week. However, the press conference following the meeting could provide more clues into future central bank moves.
What to Watch Today…
- Dallas Fed regional manufacturing at 10:30 a.m.
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JPY
There are a number of central bank meetings scheduled this week and the Bank of Japan kicked off the party. The BOJ announced more stimulus measures by getting rid of limits on its purchases of government bonds and increased the scope of its corporate debt. The measure is similar to what the Federal Reserve announced in March. As a result, Asian equity prices soared and weakened safe-haven currencies. However, the yen still managed to eek out gains versus the greenback.
AUD
The Australian dollar was the biggest winner overnight, rising over a percent against its American counterpart as two of the country’s states made moves to reopen the economy. Both Queensland and Western Australia made announcements meant to ease lockdown measures with Queensland announcing stay at home measures will be lifted on Friday. The Australian dollar has roared back nearly 17% since touching its historic lows versus the greenback last month. Nevertheless, the Aussie is still down over 8% since this time last year.
