US dollarThe dollar was up on Thursday morning, gaining back some of its losses from earlier in the session. Earlier, positive investor sentiment about the global economic recovery from the COVID-19 virus soured as investors digested a report from the U.S. Federal Reserve as it released its Federal Open Market Committee meeting minutes overnight.
The minutes warned that the COVID-19 virus posed both a severe economic threat and a risk to financial stability, but also hinted at more stimulus measures for economic recovery.
Meanwhile, Chinese relations with both the U.S. and Australia continue to simmer in the background as the two countries join a growing group looking to probe the origins of COVID-19 and China’s handling of the virus.
The EUR/USD pair was last seen trading just above mid-1.0900s as rising Sino-American tensions are weighing on the market mood.
The USD/JPY pair was up 0.11% to 107.62. Japan’s Ministry of Finance said that the country’s April exports took a 21.9% dive year-on-year.
The GBP/USD pair gained 0.13% to 1.1656 after the release of inflation data fuelling continuous speculation that the Bank of England would introduce negative rates.
The recovery in crude oil prices looks unabated, with the WTI quickly leaving behind the $30.00 mark per barrel earlier in the week. WTI Futures prints 1.80% gains while taking the bids near $34.10 during the early Thursday’s trading.
Gold prices ease from three-day high around $1,754 snapping a two-day winning streak. The US-China tussle comeback and virus data weigh on trading sentiment.
Market participants now look forward to the flash version of Eurozone and UK PMI prints for May, which will play a key role in driving the market sentiment.
Later during the early North American session, the US economic docket features the releases of Philly Fed Manufacturing Index, Initial Weekly Jobless Claims and Flash Manufacturing PMI that could possibly influence the USD price dynamics and market mood.