US dollar
The risk-on sentiment extended this Tuesday amid improving coronavirus situation in the global hotspots. Asian stocks tracked the Wall Street higher, except for the Australian markets.
The US equity futures, however, traded on the back foot, as concerns still linger over the economic impact of the lockdowns across the globe to curb the virus spread. Therefore, the safe-havens such as gold and the yen were strongly bid while the US dollar lost some ground across the board, as markets weigh in US President Donald Trump’s comments that he wants to try to lift restrictions on April 30 and also that he backs the second fiscal stimulus package.
Within the currency space, USD/JPY snapped the recent winning streak and fell sharply lower to near 108.70 region on broad dollar weakness and Japan’s declaration of the state of emergency to fight the infectious disease. EUR/USD held onto gains above 1.0800 while GBP/USD ignored the news about the UK PM Boris Johnson’s health conditions and jumped back to 1.2300.
Oil prices rallied 3% ahead of the OPEC+ meeting while Gold prices are off highs but still positive above $1,650 amid mild risk-on.
On the data front, only the UK docket sees the second-liner Halifax House Price Index (HPI), dropping in at 07:30 GMT. The NA calendar also remains a light one, with nothing of relevance except for the US JOLTS Job openings. Oil traders may wait for the private weekly inventory data from the American Petroleum Institute (API), for fresh direction.
Meanwhile, the market sentiment will remain driven by the virus-related updates and US dollar dynamics.