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Dollar Down On Improved Risk Sentiment

Dollar Down On Improved Risk Sentiment
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The U.S. dollar depreciated against its major counterparts in the New York session on Friday amid safe-haven status, as sentiment lifted up after U.S. President Donald Trump issued guidelines to reopen the economy, laying out three “phases” for states to gradually end their lockdowns.

The 18-page plan for “Opening Up America Again” outlined three “phases” in which governors could begin reopening various businesses and venues on their own timelines.

In a press briefing on Thursday, Trump said that some of the less-infected states could remove their restrictions before May 1.

The guidelines say that the number of cases and positive tests in a state or region should be declining in order to reopen.

“America wants to be open and Americans want to be open,” Trump said. “A national shutdown is not a sustainable long-term solution.”

Investors overlooked bleak China growth data and cheered reports suggesting that Covid-19 patients who are getting experimental drug called remdesivir have been recovering quickly.

The greenback declined to 0.9661 against the franc, from an 8-day high of 0.9724 seen at 6:00 am ET. The greenback is seen finding support around the 0.93 mark.

After rising to a 10-day high of 1.0812 at 6:00 am ET, the greenback reversed direction, trading at 1.0880 against the euro. If the greenback falls further, it is likely to test support around the 1.10 region.

Final data from Eurostat showed that Eurozone inflation eased as estimated in February on a notable fall in energy prices.

Inflation eased to 0.7 percent from 1.2 percent in February.

The greenback pared gains to 1.2499 against the pound, from a high of 1.2407 set at 6:00 am ET. The greenback is poised to challenge support around the 1.30 mark.

Extending early decline, the greenback slipped to a 2-day low of 0.6044 against the kiwi. The next immediate support for the currency is seen around the 0.64 level.

The greenback fell back to 1.4022 versus the loonie, heading to pierce a 2-day low of 1.4005 logged in the Asian session. Further decline in the currency is likely to see support around the 1.30 level.

The greenback is on track to break its Asian session’s 2-day low of 0.6385 versus the aussie. At yesterday’s trading close, the pair was valued at 0.6327.

The greenback edged down to 107.30 versus the yen, easing off from a session’s high of 108.08 hit at 7:15 pm ET. The currency may locate support around the 105.00 level.

Final data from the Ministry of Economy, Trade and Industry showed that Japan industrial production declined in February.

Industrial production fell a seasonally adjusted 0.3 percent month-on-month in February. According to the initial estimate, output rose 0.4 percent.

The material has been provided by InstaForex Company – www.instaforex.com