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Commodity Сurrencies Dip, OPEC+ Deal Fails to Ease Fears

Commodity currencies went down versus their safe-haven counterparts such as the greenback and yen on Monday as a record oil production cut agreed by OPEC and other oil-producing countries failed to counteract worries regarding decrease global demand.

australian dollar slippedPhoto: Flickr

The U.S. dollar grew versus its Australian counterpart by 0.07 percent, to 0.6345, whereas declined against the New Zealand dollar by 0.45 percent, to 0.6079 at 0816 GMT. counterparts, being a barometer for market risk mood, in a sign investors preserve remain feared about the consumption perspective for commodity market.

The dollar gained to the Norwegian currency, to 10.23 and rose by 0.34 percent against the Mexican pesos 23,40 at 0819 GMT.

The U.S. dollar remained steady versus the Canadian rival, gaining 0.13 percent, to 1.3968.

Trade amount could be somewhat low as bourses in Australia, New Zealand, Hong Kong, and UK are shut for the Easter holiday.

The top oil-producing nations agreed to the output lowering on Sunday to bolster oil markets as Covid-19 severely hurted global demand.

Other currency traders indicated a drop in U.S. stock futures, being a supportive aspect for risk-off trading.

Meantime, the cautious sentiment propped up the Japanese yen, which is often seen as a safe-haven currency during the times of uncertainty due Japan’s current account surplus.

The U.S. dollar tumbled versus the Japanese yen by 0.38 percent, to 108,00 at 0826 GMT.

In the onshore area, the yuan eased slightly by 0.15 percent, to 7.0556 per dollar after officials reported an increased number infected people cases on the Chinese mainland.

China is due to post export data for previous month on Tuesday, and is set to show shipments continued to decrease. Analysts will be closely assessing the details on overall trade to see the pandemic’s effects on the global economy.

The buck grew by 0.02 percent versus the safe-haven Swiss currency, at 0.9658.

Further decreases in the buck may be capped with speculative net short positions in the U.S. dollar having grown to their strongest level since May 2018, as it followed from Reuters study with the help of U.S. Commodity Futures Trading Commission reading.

The UK’s pound grew by 0.51 percent against the U.S. currency, to 1.2502, while the single currency slipped by 0.02 percent versus the buck, to reach 1.0932.

Source: Reuters

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    This week markets await the US financial bellwethers financial statements for Q1. Investors most likely need to be ready for the worst scenario, as financial institutions should have been damaged hard by pandemic.

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