The U.S. dollar slipped throughout yesterday’s session and the dollar is slightly weaker again to open today as global risk sentiment improved.
Overview
There seems to be some disagreement between the White House and state houses on who will have the authority to reopen the economy. Some state governors have banded together to help each other roll out plans while President Trump contends he has total control. Bickering aside, the conversation has indeed shifted to when and how the U.S. economy can reopen, which traders are taking as a light at the end of the tunnel. All U.S. equity futures are up over 1%, putting downward pressure on the greenback.
Earning season on Wall Street starts today with most expecting massively disappointing results. JP Morgan and Wells Fargo have already missed expectations before the bell. On the fundamental front, tomorrow will see the release of March retail sales which are expected to have their worst reading in history.
There is also a slew of Fed speakers on today’s docket including St. Louis Fed President James Bullard and Chicago Fed President Charles Evans.
What to Watch Today…
- Corporate Earnings and Fed Speakers throughout the day
Complete Economic Calendar can be found here.
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EUR
The Euro looks to add to yesterday’s gains, trading nearly half percent stronger against the greenback overnight. The optimism comes as some of Europe’s largest economies appear to have moved past the peak of Covid-19’s wrath. A slowdown of new cases have been reported in France, Germany and Spain.
The common currency is also taking advantage of a generally weaker dollar and rising equities around the globe.
GBP
The British pound enjoyed a bump stronger versus the U.S. dollar as well. In welcome news, Prime Minister Boris Johnson was released from the hospital.
Perhaps lost in the coronavirus chaos is Brexit. Indeed, the top negotiators of each side were diagnosed with Covid-19 in March. Conversations between the U.K. and the EU will restart tomorrow to iron out a negotiation schedule. We do not expect any serious news to come of these conversations but it’s a reminder that Brexit is still at the forefront once the Covid storm passes.
