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Currency Market Analysis

Apr 23, 2020 | Currency Market Analysis

Global Themes

USD weaker as Dow rallies on stimulus hopes

The US dollar was mostly weaker overnight as US sharemarkets climbed on hopes for the next round of stimulus from the US government.

The US’s Dow Jones index climbed for the first day in three as Congress came close to passing a USD500bln assistance package.

The Dow gained 2.0%

Crude oil, which steadied after its biggest one-day drop in history on Monday, also provided support.

Euro falls

The euro fell as the European Central Bank extended the type of securities it was willing to hold as collateral.

The ECB said it would now take fixed income securities at non-investment grade – or junk.

The AUD was stronger. The Aussie was helped by retail sales up 8.2% in March versus 0.5% in February in preliminary numbers.

PMI due

Today, purchasing managers index for services and manufacturing are due for a number of major economies.

Analysts expect small losses in manufacturing but much larger losses in the consumer-focused services

Later, Japanese, German and US numbers are due.

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