The greenback used to either demolish all rivals when investors sought havens or succumb to pressure when markets recovered. This has now changed, with more nuanced trading, according to FXStreet’s analyst Yohay Elam.
“The massive fiscal injection is flooding markets with cash and relative stability. On this background, currencies backed by current account surpluses such as the Japanese yen and the euro are on the rise.”
“France, Italy, Spain, and six other EU nations have called on leaders to go for issuing ‘corona-bonds’ while the ECB has revealed that it will abandon its self-imposed capital key limits from its new bond-buying scheme.”
“Italy may be showing the way forward and providing hope for containing the spread in Europe and boosting the euro.”
“US jobless claims will likely get much worse with the consensus standing at around 1.5 million and estimates reaching as high as four million. A terrible number may weigh on stocks and perhaps trigger a rush to the safe-haven dollar.”