The U.S. Dollar remained vulnerable to losses against some of its major counterparts while flourishing against petro-currencies as the weekend showed a bit of easing in markets following the key vote to pass the emergency aid bill aiming at fighting COVID-19’s forced inactivity.
Overview
A historic measure is now set in motion to dole out billions in direct help to individuals and small businesses.
The rescue comes as most central banks are in agreement to throw everything they can in order to keep the global economy from falling into a deep recession or worse. In an unscheduled meeting Friday, The Bank of Canada announced its own asset purchase program focusing on purchasing $5.0 billion weekly of government securities and short-term debt. The “loonie” is mounting a recovery after touching its weakest level in over a decade throughout the volatile FX swings of the last two weeks.
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What to Watch Today…
- No major events scheduled for today
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EUR
The Euro is finally found some peace after surging and declining during its most volatile run of its existence the past week. Seems like after tons of movement, we are back at where we started this year. A quarter redefined by fear and uncertainty will now need to be forgotten as a lost time of productivity and an opportunity to recover from now on. The European Commission will be proposing changes to the Multiannual Financial Framework (MFF), the long-term budget, to also include stimulus that “will ensure that cohesion within the Union is maintained through solidarity and responsibility,” in the words of EU President Ursula Von de Leyen.
GBP
The Pound has climbed by 2.5% in the last four trading sessions and could have room to gain as markets try to find some normality following the aggressive interventions from all sides of the globe. As risk-appetite finds some balance, it is now at least clear that April will be a full month of further physical distancing. We shall monitor progress of work-from-home policies, a path towards lessening COVIDs threat to the medical system, and if indeed the implementation of rescue programs are maintaining stability in a time of trying to manage uncertainty.
