The U.S. Dollar is trading in mainly stronger ranges after days of seeing major peers recover from multi-month if not multi-year lows with a return to optimism in equity markets over the second half of the year.
Overview
COVID-19 damage continues daily to force us to remain home and do the basics while economist try to gauge how much impact the country and globe will have to withstand. In the U.S., Congress is already working on another round of emergency spending to counter the effects of an inactive public for what may most likely be until the summer.
The White House is speaking with congress about focusing on help for public state finances, for those affected by the lack of travel, and aid with mortgages. This comes as a result of the continuation of physical distancing recommendations, which have become policy around most states. Additionally, data numbers are only expected to get worse with Non-Farm Payrolls figures expected to come in at (-100K) for March when they are released Friday.
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EUR
The Euro is losing steam as the continent continues to struggle with the deadliness of the coronavirus and leaders from the EU stall to figure a comprehensive plan to compensate for budgetary shortcuts in member nations that need to fight the pandemic’s hit to local economies.
Cash-strapped municipalities have leaders begging for a solution in the form of debt-forgiveness or any other relief. EU leaders will hold an emergency video conference on April 7th to foment consensus and come up with strategies. There are a lot of issues to tackle, but there are some reports of less infections in Italy, which is a sign of better days to come.
AUD
The Australian dollar picked up some much-needed momentum as China’s Purchasing Managers Index mounted a resurgence in March as people started going back to work from a months-long quarantine in many regions. Manufacturing PMI came with an expansion reading of 52.0 and the measure covering services and construction was even higher at 52.3. This improvement resuscitates investment sentiment and hope for a major jump in the second half of the year.
