The U.S. Dollar is trading is strong ranges following a weekend of digesting the devastating data from Friday’s Employment Situation.
Overview
Additionally, we are questioning how successful we can be in combating this disease with countries such as South Korea experiencing new flares of infected after re-opening its economy. The lack of confidence is disturbing as we now go through the planning for restarting things domestically. Not much can be done about morale when news broke out that White House staff members have been infected the last few days. Nevertheless, the greenback’s strength is solid enough that a 1.0% in the last three sessions that improved the fortunes of Australian Dollar has been completely recuperated.
There was a big jump for the greenback against the British Pound as Prime Minister Boris Johnson announced that major restrictions could not be receded yet and then the U.S. announced a decision not to take arrival flights from the U.K. No major or any data that would give much clarity is scheduled and it is clear equity markets are taking cues from the path forward rather than concentrate on gauging the damage in the economy.
What to Watch Today…
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EUR
Although there have been some news about a reduction in the deadliness and newly infected, COVID-19 has made a recovery for the bloc quite difficult. The Euro was not significantly impacted this weekend, but France also announced plans to get things going again. We will keep an eye the developing back-and-forth between the EU and the German High Courts as EU President Ursula Von Der Leyen who is said to be considering actions against the member nation for its anti-ECB stance. This could be more interesting than originally thought as just some legal non-issue that would go away.
CAD
The Canadian Dollar is on the same boat as petro-currencies and its Oceanic brethren as the continuation of the virus’ existence remains a thrown on future plans for economic well-being. Much like Aussie, the “Loonie” is dependent on China’s health, but as the giant is responding to issues on many fronts, its surge into rapid productivity may not be so quick. Re-opening the globe will mean dealing with the coronavirus head on and there is a plethora of unknowns that come with it. Expect May to keep us on edge and provide guidance slowly as re-opening takes on a quiet pace.
