As Forex traders focused on the prospect of an eventual economic recovery from the devastation caused by the Coronavirus, the USD fell on Monday.
In addition, riskier currencies, including the Australian dollar, are on the rise.
Here are the Bitcoin Loophole highlights from yesterday’s session.
Forex Market: 5 Key Points for Next Week
Dollar Falls in the Forex Market
The World Health Organization (WHO) reported last Sunday that the entire world suffered a significant increase in cases of Coronavirus. Despite this, investors decided to buy higher risk currencies.
Due to this trend, the USD fell 0.64% in the Forex market against a basket of currencies, reaching 97.06 points.
Dollar Forex Market Falls 22062020
Dollar index chart, indicating its fall on Monday. Source: Yahoo! Finance
In addition, the EUR rose 0.72% against the USD to 1.1256, up from its recent falls of nearly two and a half weeks.
COVID-19: Forex Market Modifier
Some analysts believe that strong economic data has raised hopes that the economy will recover quickly from the Coronavirus-related branch closures. One such company is Apple Inc., which issued a statement Friday expressing the temporary closure of stores in Arizona, Florida, North Carolina and South Carolina. All this thanks to the new registered cases of COVID-19.
However, Joe Maninbo, senior market analyst at Western Union Business Solutions in Washington D.C., remains optimistic:
„However, Joe Maninbo, senior market analyst at Western Union Business Solutions in Washington, D.C., remains optimistic: „The market is focused on the second half of the year, where it expects the recovery to begin in earnest (…) Conviction is very weak, so sentiment may change at any moment, but for now the market is seeing the glass as half full.
Other investors such as Francesco Pesole, Forex strategist at ING Direct, points out that they were all watching to see to what extent the new cases led to stricter quarantine measures and blockades:
„If the markets start making the connection that more cases will automatically lead to new blockades, they will consequently become much more sensitive to any spikes in terms of this second wave.