Forex Morning Brief: APR 22 (WED)
Ming Lam April 21, 2020 9:28 PM
The U.S. dollar gained traction against other major currencies, with the ICE Dollar Index climbing 0.3% on day to 100.20...
On the forex front, the U.S. dollar gained traction against other major currencies, with the ICE Dollar Index climbing 0.3% on day to 100.20.
GBP/USD plunged 1.1% to 1.2299. Bank of England Chief Economist Andy Haldane said economic data for the first half of the year would likely be "very ugly". The latest official jobs report showed that U.K. jobless rate for the three months to February edged up to 4.0% (steady at 3.9% expected). On the other hand, CPI data for March will be reported later in the day.
GBP/USD: Intraday 30-minute Chart:
Source: GAIN Capital, TradingView
EUR/USD fell 0.1% to 1.0855. Italy's Prime Minister Giuseppe Conte said his government will, in the next few days, analyze plans to gradually ease lockdown, which may apply on May 4. Regarding economic data, the German ZEW Current Situation Index plunged to -91.5 in April (-75.0 estimated) from -43.1 in March, while the Expectations Index bounced to 28.2 (-42.0 expected) from -49.5.
USD/JPY gained 0.1% to 107.71.
The Canadian dollar slid against the greenback for a second straight on continued weakness in oil prices. USD/CAD advanced 0.3% to a two-week high of 1.4193. On the other hand, official data showed that Canada's retail sales data grew 0.3% on month in February (as expected). Later today, CPI growth for March will be released (+1.1% on year expected).
AUD/USD lost 0.7% to 0.6293. Reserve Bank of Australia governor Philip Lowe said the Australian economy is expected to contract by 10% over the first half of the year and jobless rate might reach 10% by June.
Meanwhile, NZD/USD slumped 1.2% to 0.5963. Reserve Bank of New Zealand governor Adrian Orr said the central bank will be assessing the needs for additional stimulus at its May meeting.
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