U.S. Dollar Falls On Hopes Of Easing Lockdown Restrictions
April 22 2020 - 1:07AM
RTTF2
The U.S. dollar drifted lower against its major counterparts in
the European session on Wednesday on improved risk sentiment, as
some countries in Europe are considering to relax COVID-19
restrictions.
Italian Prime Minister Giuseppe Conte has convened a taskforce
comprised of leading economists and health experts to weigh all the
pros and cons of easing restrictions.
"I would like to be able to say, let's open everything. Right
away," Conte wrote on Facebook. "But such a decision would be
irresponsible."
Elsewhere, Spain aims to begin winding down its coronavirus
lockdown in the second half of May, Prime Minister Pedro Sanchez
said today.
"We will be going back-and-forth depending on how the pandemic
evolves," he said.
In France, the government has said restrictions will be
gradually lifted from May 11.
The greenback edged down to 0.9683 against the franc, from a
high of 0.9705 seen at 12:30 am ET. The greenback is seen finding
support around the 0.94 mark.
The greenback weakened to 107.51 against the yen, from
yesterday's closing value of 107.75. If the greenback falls
further, 106.00 is likely seen as its next support level. The
greenback dropped to 1.0874 against the euro, after rising to
1.0845 at 12:30 am ET. The greenback is seen locating support
around the 1.10 mark.
The greenback slipped to 1.2344 against the pound, reversing
from a high of 1.2275 logged at 12:30 am ET. Further drop in the
greenback may face support around the 1.26 area.
Data from the Office for National Statistics showed that UK
inflation slowed to a three-month low in March.
Consumer price inflation eased to 1.5 percent in March from 1.7
percent in February. This was the lowest rate since last December,
when prices were up 1.3 percent. The rate came in line with
expectations.
After gaining to 1.4238 against the loonie and 0.5948 against
the kiwi in early deals, the greenback declined to 1.4139 and
0.5999, respectively. The next possible support for the greenback
is seen around 1.33 against the loonie and 0.64 against the
kiwi.
The greenback fell back to 0.6347 against the aussie, heading to
pierce its Asian session's 2-day low of 0.6350. The greenback may
face support around the 0.70 region, if it falls again.
Looking ahead, Canada CPI for March and U.S. FHFA's house price
index for February are due out in the New York session.
At 10:00 am ET, Eurozone consumer sentiment for April will be
featured.
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