Dollar lowr on massive liquidity measures

The U.S. Index, which measures the dollar strength against a basket of six currencies was lower on Monday’s trading session but remained near its three years high. The index ended the session at 102.45 as investors pursued the green currency ahead of a sharp anticipated fall in cashflow.

The Fed tried to mitigate the situation by announcing unlimited quantitative easing and programs to support credit markets on Monday.

The program includes purchases of corporate bonds, guarantees for direct loans to companies and a plan to get credit to small and medium-sized businesses.

While this move might support companies in the long-run, investors remained worried amid uncertainty about the extent of the pandemic

The U.S. President Donald Trump approved disaster deceleration requests from New York and Washington, while St. Louis Federal Reserve President James Bullard said that unemployment could reach 30 percent unless the Fed intervenes fiscally.

Meanwhile, the coronavirus continues to spread as countries adopt extreme social restrictions trying to contain the outbreak.

The global death toll has almost reached 16500, the number of cases is approaching 400,000 and the economic fallout of what is in effect a global lockdown is spiraling.

Over in Europe, the Common currency was slightly higher on Monday’s session but still under pressure by a strong dollar as investors are seeking the greenback. The Common currency was slightly higher against the U.S. Dollar to finish at 1.0723.

In the economic space, Germany Manufacturing Purchasing Managers Index which measures the activity level of purchasing managers in the manufacturing sector is due to be released today, expectations show a decline to 39 compared to 48 in the previous month.

The Great British Pound was lower versus its counterpart, the U.S. Dollar, to settle at 1.1544GBPUSD.

The Cable fell on Thursday’s session after Bank of England cut its interest rate to 0.1 percent estimates were expecting the BoE to maintain the rate at 0.25 percent.

Regarding Safe-Haven assets, the Greenback was higher against the Japanese Yen, to end the session at 111.36 USDJPY. On the other hand, the Greenback fell slightly versus the Swiss franc to trade at 0.9849 USDCHF.

The Precious Metal Gold surged versus the U.S dollar to finish the session at 1552.9 per ounce after the fed said it is going to buy unlimited amounts of Treasury bonds and mortgage-backed securities to keep borrowing costs at low levels.

Elsewhere in Canada, the Loonie Dollar was lower versus the Dollar to finish at 1.4509  USDCAD the Canadian dollar is still under pressure by the fall of oil prices which fell sharply due to the coronavirus spread.

In Asia, the Aussie Dollar which is a proxy for the Chinese Yuan finished the session slightly higher at 0.5823 AUDUSD but still pressured by the virus epidemic concerns, moreover, The Kiwi Dollar was higher finishing at 0.5704 NZDUSD.

Cryptocurrencies ended the session higher, with Bitcoin finishing the session at 6385 BTCUSD, while Etherium Finished higher at 129.9.

 

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