The U.S. dollar took a breather from the rally it experienced to start the week overnight.
Overview
American equity futures and the price of oil look to modestly rebound after a rough two days of trading. The ray of optimism comes on the tails of the announcement of a new $484 billion dollar relief package aimed at bolstering small businesses and overwhelmed hospitals. The deal is supported by President Trump, was passed by the Senate yesterday and is expected to pass a vote in the House tomorrow.
With no major economic data on today’s docket, it appears the dollar will experience a modest pull back as risk rebounds. However, all eyes will remain on the price of oil and its effect on risk sentiment during today’s session. Tomorrow’s weekly jobless claims will merit attention.
What to Watch Today…
- No major events scheduled today
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EUR
The Euro has suffered against the U.S. dollar as the greenback has been the biggest beneficiary of risk-off trading. The common currency is experiencing some relief this morning as sentiment has turned positive, but the Euro’s strength is likely to be limited. Germany, Europe’s largest economy, has been attempting to reopen the economy, which could help the Euro. But the attempted reopening has hit early turbulence. Germany’s new infections rose to a three-day high yesterday and the death toll shot higher.
AUD
The Australian dollar rose 0.5% against its American rival after Australian retail sales surged by the most on record last month. The initial estimate was an 8.2% jump from in March from February. Analysts were quick to point out that the pop was likely due to panic buying before many businesses closed. While April sales are expected to turn sharply lower, the solid March print may help keep Australia out of negative growth in the first quarter.
