USDIndex, H1 & Daily
The dollar has continued to weaken versus most other currencies, correlating with the sharp decline in US Treasury yields.
The USDIndex (DXY) earlier printed a fresh two-month low at 96.10, extending a decline from the 35-month high that was seen on February 20th, at 99.91. EURUSD has concurrently posted a seven-month peak, at 1.1290, which is the new culmination of the biggest two-week gain the pair has seen since February 2016. USDJPY has been undermined by both Dollar weakness and concurrent safe-haven driven outperformance in the Yen, and fell to a six-month low at 105.75. EURJPY and other Yen crosses also printed fresh lows. AUDJPY posted a four-day low, and is nearing the 11-year low the cross saw last week. AUDUSD has remained relatively buoyant, holding above recent 11-year lows on the back of the US Dollar’s weakness. The COVID-19 virus, while having so far disrupted some other economies more than the US (China, Japan and South Korea, for instance), is proving to be a leveller of the hitherto relatively robust US economy, with several states (California, Washington and Maryland) now having declared a state of emergency.
Click here to access the HotForex Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
