The dollar was down on Monday morning, giving up some of its gains from Friday. U.S.-China tensions rose over the weekend after White House trade advisor Peter Navarro suggested that Beijing sent “hundreds of thousands of Chinese on aircraft to Milan, New York and around the world” to spread the virus after hiding it from the world for two months.
Meanwhile, U.S. Federal Reserve Chair Jerome Powell said in a separate interview that the U.S. economy could shrink up to 30% in the second quarter but will avoid a second Great Depression in the long run.
The USD/JPY pair gained 0.10% to 107.18 after Japan slipped into recession for the first time since 2015.
The GBP/USD pair rose 0.05% to 1.211. Andrew Haldane, Bank of England chief economist, said on Saturday that the bank is considering negative interest rates.
The EUR/USD pair is clinging to its range around 1.08 as large European countries continue gradually lifting restrictions. Over the weekend, Spain and Italy reported the lowest number of deaths since March.
WTI Oil has been extending its recovery, trading above $30. The increase in demand – albeit from a low point – and a drop-in supply from the US and Saudi Arabia have pushed prices higher. Gold is trading around $1,760, levels last seen in late 2012, and consolidating its gains. The precious metal is benefiting from central bank bond-buying schemes and falling yields.
In the absence of any major market-moving economic releases, either from the Eurozone or the US, broader market risk sentiment and the USD price dynamics will be closely eyed.
Dollar Down Amid Rising U.S.-China Tensions – Oil prices hit one-month highs on output cuts
Published on 2020-05-18 07:46
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