US dollarThe week has kicked off where it ended, with cautious optimism in stocks, a marginally weaker dollar and only oil prices are on the back foot. Bad news seems to be priced in. America lost over 20 million jobs in April, within expectations, and the Unemployment Rate hit 14.7% as of mid-April, with employment losses reaching even the healthcare sector.
The USD/JPY pair gained the 107.00 handle after Japan announced a second budget to ease COVID-19’s economic impact, including aid for companies struggling to pay rent and more subsidies for those hit by slowing sales.
The GBP/USD pair was up to 1.2420 after Prime Minister Boris Johnson outlined the U.K.’s plans to slow lift COVID-19 lockdown measures on Sunday.
The EUR/USD pair clings to 1.0850 as markets digest US Non-Farm Payrolls, amid European countries gradually loosening lockdowns.
Oil prices fell on Monday as concern over a persistent glut and economic gloom caused by the coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top producers.
Gold is steady, holding above the $1,700 mark, over fears of second COVID-19 wave in China, South Korea and Japan.
Looking ahead, data releases won’t be of too much importance today as the focus will remain on the risk rally and if the bulls can continue their recent good form.