The US Dollar entered this week already at a weak point against most of the major currency pairs in the forex market. That weakness has continued today with no major announcements on the economic calendar leaving the currency at the mercy of an upbeat market outlook. This outlook has extended to COVID cases in the US with the trend predicted to move further downward from here. Despite the positives, markets have opened with little upward movement, and even a small dip from record levels.
Dollar Continues to Move Lower Still
The Greenback continued to make other major currencies appear strong today much off the back of its own lack of strength. The US Dollar Index continued considerably lower toward 91 points as those forex trading the Dollar continue efforts to look beyond present struggles. The EUR/USD has also broken higher above 1.20 marking its highest point since the beginning of March. This coming even as EU data failed to meet expectations.
Another factor that has kept the Dollar in a depressed position is that US Treasury yields have continued to remain restrained below 1.60% as the markets opened for business today. This should typically encourage a more risk-on mood even if it is yet to be felt today on Wall Street.
Top Doctor Expects Further Case Decline Ahead
Former FDA Chief Dr. Scott Gottlieb has said that he expects coronavirus case numbers to continue their decline in the weeks ahead, adding fuel to the fire of positivity felt by forex brokers. Even though cases remain higher than they were at the end of last month, the most recent weekly data is showing a fall back in new numbers.
This is something Dr. Gottlieb thinks will continue to been seen in the weeks and months ahead as summer approaches and more people begin to socialize outdoors. The fact that all US adults are now eligible for a COVID-19 vaccination is also something that will no doubt hasten the decline. The new administration has continued to knock down vaccine targets with more than half the population now having received at least one dose according to the CDC. News also that the FDA looks set to resume Johnson & Johnson vaccines has been positively received.
Positive Outlook Slow to Filter to Market
Markets on Wall Street have started the week with a quiet opening. This may be surprising given that numbers in the forex market including Dollar strength would indicate a risk-off mood. The NASDAQ has fallen over 100 points as tech leads the losses so far. The Dow Jones and S&P have also both slipped from prior record highs.
Despite the opening jitters, markets still trade close to all-time highs following an impressive earnings week just past. The feeling remains positive also from many analysts who still expect there is room to run with the reopening trade of the economy firmly in sight.