The U.S. dollar is in familiar, strong ranges against most of its counterparts this morning even as global equity markets surge.
Overview
The Dollar Index is just 0.1% lower. American stock futures are up big after claims that the Gilead Science coronavirus drug showed good progress in patients being treaded in Chicago. The report says they are “seeing rapid recoveries in fever and respiratory symptoms.” The risk environment was already on the upswing as President Trump introduced bare-bones guidelines for reopening the economy in the coming weeks and months.
The Conference Board Leading Index will be released at 10 a.m. At the same time the Federal Reserve’s James Bullard will be speaking.
With the dollar showing resilience in the face of risk-on trading, any dip in sentiment could lead to a renewed dollar rally.
Fed watchers will also be busy today as there are no less than six Federal Reserve Presidents speaking throughout the day.
What to Watch Today…
- No major events scheduled today
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EUR
The Euro was unable to take advantage of a normally Euro-positive risk environment as disappointing data continues to pour out of the bloc. The European Central Bank maintain its dovish approach, weighing on the common currency like a wet blanket. The wording was as expected, as the central bank expressed their willingness to expand their asset purchase program by as much as necessary and for as long as needed.
AUD
The aggressive risk-on sentient this morning may seem a little surprising after China said their gross domestic product shrank 6.8% in the first quarter, the first contraction since the early 1990s. Despite the ugly data, Asian stock indices are higher today with the MSCI Asia Pacific Index adding almost 2.0% of value. As a result, both the Australia and New Zealand dollars have rallied 0.68% and 1.1%, respectively.
