The safe-haven U.S. dollar rose again overnight as global risk sentiment soured with European and Asian equities in the red this morning.
Overview
The price of crude oil collapsed, putting extra downward pressure on American stock futures. The price of a barrel is under $12 a barrel, representing the lowest price since 1998. All U.S. indices are set to open over 2.0% lower.
There is no major data set to be released in the United States today, so the greenback is likely to move with risk sentiment. Outside of oil and coronavirus headlines, we will be watching developments in the U.K. as Brexit negotiators head back to the virtual table.
What to Watch Today…
- No major events scheduled today
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CAD
As one might expect, commodity-based currencies are under heavy pressure this morning as the price of oil has fallen off a cliff. At the time of writing, WTI was down 35%, which would represent the biggest intra-day drop in almost 40 years. The Canadian dollar is down almost a full percent, a modest decline when compared to oil. The Norwegian krone and the Mexican peso are also feeling the ill effects of oil and risk-off trading. The Mexican peso was already on the backfoot after Moody’s downgraded Mexico’s credit rating late Friday.
NZD
The New Zealand dollar bucked the trend of weaker commodity-based currencies and a general stronger U.S. dollar by edging out modest gains. The New Zealand government is said to have plans to ease some of its lockdown restrictions starting next week, which was enough to give the Kiwi a boost.
