The British pound is trading mixed against its G10 currency competitors midweek as investors comb through the influx of April inflation data. For the first time in the nation’s history, the United Kingdom sold a negative-yielding bond, meaning that the government is being paid to borrow. In the post-Coronavirus economy, this might be the new norm for a myriad of nations around the world.
The New Zealand dollar was the weakest currency on the Forex market today, sinking after the monetary policy announcement from the Reserve Bank of New Zealand. While the central bank kept its benchmark Official Cash Rate (OCR) unchanged, it almost doubled the scale of the quantitative easing program.
The euro today traded sideways against the US dollar amid weak macro reports from Germany and France as investors await crucial US jobs data. The EUR/USD currency pair today traded within a tight range following three daily pullbacks as divisions among EU nations persist.
The Swedish krona rallied against many of its major currency counterparts on Tuesday after the central bank left interest rates unchanged and maintained stimulus measures to reverse its worst economic slump since the Second World War. But policymakers assured markets that they would act if the financial crisis intensifies and additional monetary easing is needed to mitigate a severe downturn.
The Canadian dollar hit the pause button on its recent rally after the federal government released its gross domestic product (GDP) reading early for the first time ever. The loonie is slumping on news that economic activity suffered the biggest monthly decline in history. With falling energy prices and accommodating central bank, it could be a downward trend for the Canadian dollar in the near-term.
The euro today fell against the US dollar as traders took their profits following 4-day rally marked by steady gains driven by positive investor sentiment. The EUR/USD currency pair headed lower as the greenback rallied higher amid rising coronavirus cases and deaths in Spain and Italy.
The Canadian dollar today spiked higher against the US dollar after the Federal Reserve announced massive quantitative easing measures causing the greenback to fall. The USD/CAD currency pair fell briefly before recouping its losses and heading higher as the dollar recovered and the Loonie was weighed down by weak crude oil prices.
The Australian dollar was among the weakest currencies on the Forex market together with its commodity-related counterparts today due to coronavirus panic that makes investors seek safer options. While it has trimmed its losses by now, the Aussie is still trading below the opening level against the majority of most-traded currencies.
The New Zealand dollar dropped today after the Reserve Bank of New Zealand made a surprise announcement of a quantitative easing program. Currently, the kiwi has trimmed its losses but is still trading below the opening level against its most-traded counterparts, with the exception of the Australian dollar. The Aussie was dragged down by bond purchases under the quantitative easing program of its own central bank.
The Sterling pound today had a muted reaction to an emergency rate cut by the Bank of England after the close of the London markets. The GBP/USD spiked higher briefly before heading lower as the greenback posted gains due to high demand.
