Risk currencies rise above cautious hopes that the epidemic is at its peak

Tokyo, April 9 (Reuters) – At risk currency-currencies climbed on Thursday on the basis of renewed optimism, the coronovirus epidemic may peak, although the euro failed to agree on more support for the weak economies of the European Union.

The Australian dollar gained $ 0.6233, trading near its highest level since mid-March and touched a $ 0.5510 rally three weeks earlier from its 17-year trough.

The euro dipped to $ 1.08 after the euro slipped 0.86% on Wednesday, with EU finance ministers failing all-night negotiations to agree on greater economic support for their coronovirus-based economies. The main sticking point was the conditions for access to emergency credit lines in the euro zone bailout fund and the notion of issuing joint loans by the block, the so-called “coronabonds”.

The euro’s fall at night helped the dollar index to reach 100.120.

The index is down 0.5% so far this week as safe-haven flows for the US currency eased on rising expectations for Europe and the United States could soon see itself out of the worst period of the COVID-19 epidemic.

“New York reported its greatest death, while the infection was at a four-day high in Spain and three days in Italy,” said Toharu Sasaki, Japan’s head of market research at JP Morgan. “These are all negatives but both the government and experts predict that peaks may come within the day and are the leading markets for not focusing on those details.”

New York State reported the most coronovirus cases worldwide on Wednesday, overtaking Spain, according to a Reuters tally. Due to 1230 GMT the focus is on the US initial preliminary claim data.

Economists had an average forecast of 5.25 million, after nearly 10 million claims in the last two weeks.

“The market already knows that the economy is striking exceptionally well,” said Sasaki of JP Morgan. “Even when the numbers increase, it will probably surprise some people while a better reading may increase the perception that the worst can happen and trigger a larger market reaction.”

On top of the hopes of a peak in the epidemic, commodity-linked currencies, including Australians, received an additional boost from the hope that major oil producing countries might agree to cut output at a video conference on Thursday.

Media reports suggested that Russia would cut its production and Algeria’s energy minister said they expected a “fruitful” meeting, although tensions between the world’s top three producers, the United States, Saudi Arabia and Russia, remained. The Canadian dollar traded at $ 1.4020 per US dollar, not closing at $ 1.3945 at this week’s peak. The Canadian unit is recovering from a four-dollar low of $ 1.4669 hit on 20 March.

The yen stood at 108.85 yen per dollar and is trading in a narrow range so far this week.

Binoy Roy

Binoy Roy

A late bloomer but an early learner, Binoy likes to be honestly biased. Though fascinated by the far-flung corners of the galaxy, He doesn’t fancy the idea of humans moving to Mars. Francisca is a Contributing Author for Newstrail. Be it mobile devices, laptops, etc. he brings his passion for technology wherever he goes. Email:- millionairbook.com@gmail.com

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