The US dollar rallied on Tuesday after suffering huge losses to the safe haven currencies Japanese yen and Swiss franc, this came as investors hopes that global monetary policymakers could come to an arrangement for the introduction of further stimulus efforts to mitigate the economic impact of the Covid-19 outbreak. The US dollar’s recovery worked in tandem with a rebound in the US stock market and a bounce in Treasury yields across the board, which came after President Trump’s announcement arrived that he would hold a news conferences on Tuesday addressing the economic measures necessary in combating the virus. Suggestions of further stimulus efforts by some governments helped reverse some of Monday’s deviations as optimism for the future was handed out to investors.
Too Early to Call a Bottom in USD as Oil Prices Keep Pressure on the Currency
After Monday saw significant losses for the US dollar against the Japanese yen , euro and Swiss franc, optimism that central bank policymakers would introduce co-ordinated stimulus measures to combat the economic impact of the coronavirus brought the American currency some support. The dollar also began to recover after both US stock futures and bond yields rose after US President Donald Trump’s announcement on Tuesday, in which he noted that he would be taking ‘major’ steps in strengthening the American economy against the coronavirus outbreak. However, the market has noted that it was too early to call a bottom in the dollar after plummeting oil prices saw the largest decline in almost 30 years at around a 30% drop....
USD Could Extend Gains If Optimism Remains High, With Euro Looking Like an Easy Target
Moving into the mid-week point, USD could extend its gains if the market’s mood about the spread of