US Dollar Eases as Markets Move Towards Riskier Currencies
Arslan Butt • 1 min read
The US dollar is weakening against riskier currencies early on Thursday as the market sentiment improves over hopes that the coronavirus pandemic is peaking in several countries across the world. At the time of writing, the US dollar index DXY is trading around 100.08, down 0.5% so far this week.
In early Asian session, AUD/USD managed to rise above the 0.6000 level and soar to the highest level in nearly a month. However, the improved sentiment has failed to push EUR/USD higher over worries that the EU has been unable to offer enough economic support to its member nations amid the coronavirus crisis.
The US dollar has lost some of its safe haven appeal as the number of cases rise at a slower pace, especially in the worst affected countries like Italy and Spain, as well as in the US. Markets are hopeful that the pandemic is moving towards a plateau and they maybe the worst is behind them.
Later today, the US dollar could see significant moves following the release of the weekly jobless claims data. After climbing to nearly 10 million over the past couple of weeks, economists expect a rise of 5.25 million for the previous week, as the shutdowns because of coronavirus forces businesses to layoff more workers.