The U.S. dollar fell against the euro for the third straight day on Thursday as the common currency continued to bask in the glow of the recently announced 750 billion-euro ($828.90 billion)coronavirus recovery fund amid improved risk appetite, leading investors to favor riskier assets. The euro's price action continues to be driven by global risk sentiment, even as market participants remain deeply skeptical that the EU recovery fund proposal will navigate the bureaucracy unscathed, said Simon Harvey, FX analyst at Monex Europe. Overnight implied volatility gauges inched up to hit a one-month high above 8%, suggesting investors were prepared for unexpected moves in the common currency.
GBP/USD is attempting to recover higher this week on the back of a weaker dollar, however, expectations of further monetary policy easing are weighing on the pair.
EUR/USD broke to highs not seen since the start of April, lifted by prospects of further easing in Europe and a weaker dollar.
(Bloomberg) -- Economic sentiment in the euro area rose from a record low after companies started to reopen across the continent following the easing of pandemic restrictions.A small pickup in the European Commission gauge is consistent with similar reports in recent weeks that suggest the 19-nation region is slowly working its way out of the worst crisis in living memory. At the same time, the loss of jobs and business to weeks of lockdowns is likely to leave lasting damage on the fabric of the economy.The recovery in industry confidence in May was driven entirely by higher production expectations, which reversed roughly half their slide of the previous two months. At the same time, manufacturers became more pessimistic about demand, and sentiment in services also worsened, reflecting the particular pressure on hotels, restaurants and tourism.The European Union’s executive arm unveiled an unprecedented stimulus package Wednesday that’s anchored by 750 billion euros ($825 billion) of joint debt issuance and skewed toward euro members most affected by the pandemic including Italy and Spain.Governments have also announced generous individual initiatives to help their economies regain ground. Earlier this week, President Emmanuel Macron unveiled a raft of measures aimed at reviving France’s struggling car industry. Germany is set to present a comprehensive plan in early June.European Central Bank President Christine Lagarde has praised member states for their quick response and tried to alleviate concern on Wednesday that higher public spending will result in a new debt crisis. Policy makers have kept borrowing costs low with a new 750 billion-euro bond-purchase plan, which is likely to be increased at next week’s Governing Council meeting.At that time, new economic projections will be available. The commission has predicted a 7.7% decline in euro-area output for the year, and the ECB is bracing for a slump between 8% and 12%.With efforts to revive the economy growing in size, sentiment rose to 67.5 from a downwardly revised 64.9 in April. That number was updated to account for changes in French data.Sentiment edged up in the Netherlands, Germany, and Spain and was broadly unchanged in France. With April data for Italy unavailable, it’s not possible to judge the latest twists in the trend in the euro area’s third-largest economy.The region’s employment expectations gauge bounced back in May but remained at historically low levels. Job losses are only starting to mount, especially in industries hardest-hit by the pandemic. Unemployment is rising even in Germany despite a generous support program offered by the state.TUI AG, the world’s biggest package-holiday company, will eliminate as many as 8,000 jobs, about 15% of its workforce. Air France-KLM has started talks with unions to reduce staff as part of a restructuring to be unveiled in the coming months.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Euro zone bond yields were relatively stable in early Thursday trade, with Italian yields holding near eight-week lows as optimism derived from the European Commission's recovery fund proposal continued to drive the market. French Finance Minister Bruno Le Maire said on Thursday that he hoped the European Union could reach a deal on the Commission's proposed recovery fund in the coming weeks.
A European Commission plan to issue large amounts of common EU bonds under a coronavirus recovery fund potentially marks the first step towards the euro zone finally getting a region-wide safe-haven asset, investors said. If member governments approve the plan, the EU would borrow 750 billion euros on the markets to finance the fund, a nearly 15-fold increase on its current bond debt pile and making it the region's leading supranational borrower. The recovery fund debt won't on its own be able to rival the region's current fixed-income instrument of reference, Germany's trillion euro bond market, but it might form the basis of an issuance programme that eventually could.
RBNZ economic stress test analysis suggests banks in the country can continue to lend and prosper through a broad range of adverse scenarios.
European stock markets are set to edge higher Thursday as the region continues to reopen for business, but gains will be limited amid rising tensions between the U.S. and China over Hong Kong. At 2 AM ET (0600 GMT), the DAX futures contract in Germany traded 0.5% higher. France's CAC 40 futures were up 1%, while the FTSE 100 futures contract in the U.K. rose 1.2%.
The U.S. dollar fell against the euro for the third straight day on Thursday as the common currency continued to bask in the glow of the recently announced 750 billion-euro ($828.90 billion)coronavirus recovery fund amid improved risk appetite, leading investors to favor riskier assets. The euro was 0.49% higher against the greenback at 1.1057. The single currency has risen 1.5% over the past three sessions.
Posted by OFX AUD - Australian Dollar The Australian dollar fell through trade on Wednesday, slipping off multi-month highs at 0.6680 amid increasing Chinese trade uncertainty. Having pushed back through 0.6650 for the first time since March’s unprecedented price action the AUD plunged lower, loosing over a cent in overnight trade, falling … Continue reading "Chinese trade tensions know AUD off multi-month highs"The post Chinese trade tensions know AUD off multi-month highs appeared first on .
* Australian Q1 Construction Work Done beat expectations by falling 1.0%. * Gold prices fell intraday, adding pressure on the Aussie. * AUD/USD declined from a multi-week high seems corrective.The AUD/USD pair hit a fresh multi-week high of 0.6679 in the European session, but retreated from the level and settled around the 0.6600 mark. Australia released the Q1 Construction Work Done, which resulted better than anticipated, printing at -1.0%. Nevertheless, the positive tone of the pair was related to the broad dollar's weakness and rallying equities, easing during the American session as the sentiment turned sour.The American currency got to recover some ground on mounting tensions between the US and China over the latest Hong Kong security laws. Gold losing the 1,700 level added pressure on the commodity-linked currency intraday, although the commodity managed to recover and settle at around 1,720.00. This Thursday, Australia will publish the Q1 Private Capital Expenditure.AUD/USD short-term technical outlook The AUD/USD pair has been unable to surpass a flat 200 DMA for a second consecutive day, which somehow could be discouraging for bulls. In the short-term, and according to the 4-hour chart, the pair maintains its bullish stance, as buyers are defending the downside at around a bullish 20 SMA. Technical indicators in the mentioned time-frame are recovering within positive levels after correcting overbought conditions.Support levels: 0.6560 0.6515 0.6475Resistance levels: 0.6650 0.6685 0.6720View Live Chart for the AUD/USDImage by 3D Animation Production Company from PixabaySee more from Benzinga * AUD/USD Forecast: Bullish, And Ready To Challenge The March High - 5/26/2020 * EUR/USD Forecast: Testing The Elusive 1.1000 Threshold - 5/26/2020 * AUD/USD Forecast: Retains Its Bullish Stance In The Short-Term(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The dollar steadied against the euro on Wednesday even as the common currency remained supported by news of a proposal for an economic recovery package to help the euro zone region recover from the coronavirus pandemic. The euro was up 0.03% against the dollar at $1.09855, after rising as high as $1.10315, its strongest since April 1. The common currency gained 0.8% on the greenback on Tuesday.
USD/CAD is trying to settle above 1.3800 as demand for safe haven assets provides support to the U.S. dollar.
The dollar steadied against the euro on Wednesday even as the common currency remained supported by news of a proposal for an economic recovery package to help the euro zone region recover from the coronavirus pandemic. The euro was about flat against the dollar at $1.0979, after rising as high as $1.10315, its strongest since April 1. The common currency gained 0.8% on the greenback on Tuesday.
We have turned around to show signs of life again, and therefore I think gold is likely to continue going higher.
Buying sentiment towards the Euro jumped on Wednesday after the European Commission unveiled a coronavirus recovery package worth a whooping 750 billion euros.
A European Commission plan to issue large amounts of common EU bonds under a coronavirus recovery fund potentially marks the first step towards the euro zone finally getting a region-wide safe-haven asset, investors said. Unveiled on Wednesday, the fund is to comprise 500 billion euros in grants and 250 billion euros in loans, designed to help the most vulnerable European Union states recover from the deep economic scars left by the epidemic. If member governments approve the plan, the EU would borrow 750 billion euros on the markets to finance the fund, a nearly 15-fold increase on its current bond debt pile and making it the region's leading supranational borrower.
Silver failed to settle above the key resistance at $17.50 and declined below the nearest support level.
The British pound rolled over a bit during the trading session on Wednesday, from the highs of the trading session on Tuesday.
The Euro has rallied significantly after initially falling from major resistance on Wednesday based upon stimulus hopes.
While value and small caps are starting to recover, the stay-at-home stocks are starting to lose steam. One strategist is concerned.