Dollar holds gains as European markets rebound after crash
- ECB did not follow Fed, BoE in cutting rates.
- European markets rebound after Thursday’s meltdown.
- Policymakers struggle with coronavirus response.
The dollar stood tall on Friday as investors rushed to buy the currency amid deepening panic over the coronavirus epidemic, while the euro nursed losses after the European Central Bank underwhelmed investors by not cutting rates.
The greenback held gains against most currencies after a blowout in swap spreads on Thursday signalled that investors want dollars.
Equity markets in Europe clawed back some ground in early trading to steady nerves after plunging on Thursday.
Norway’s central bank became the latest to cut rates on Friday in an attempt to limit the economic damage, sending the crown up about 1% against the U.S. dollar and the euro as investors welcomed the move to support the oil-dependent economy.
The ECB on Thursday announced a stimulus package that provides loans to banks with rates as low as -0.75% and increases bond purchases, but it did not join its counterparts in the United States and Britain by cutting rates.
The Federal Reserve moved on Thursday to provide $1.5 trillion in short-term liquidity and changed the durations of Treasuries it buys, but money markets show investors expect the Fed will have to go even further to restore calm to financial markets.
ECB President Christine Lagarde aggravated a market selloff by saying it was not the central bank’s job to close the spread between the borrowing costs of various members, comments which she later tried to roll back.
Opinion was divided on the ECB’s package, with analysts at Commerzbank arguing that its decision “not to fire all pointless Bazooka barrels” with a rate cut was a sensible choice and predicted the euro was likely to recover.
“In times of crisis the ECB does not take extreme, EUR-negative measures. Let us give the market a little more time to get used to that,” they said.
“Once it has done that it is likely to value the euro more highly, reflecting the fact that a safe haven currency is attractive to investors.”
The euro traded at $1.12035, following a 0.7% decline on Thursday in the wake of the ECB decision. For the week, the common currency is on course for a 0.7% decline.
Against the pound, the dollar fell slightly to $1.2596 on Friday, following its biggest one-day gain against sterling since July 2016.
The dollar rose 1.1% to 105.81 yen on Friday, on course for a 0.5% weekly advance.
The greenback’s rebound this week reflects its role as the world’s most liquid currency that investors seek in times of stress.
The Fed meets next week and many analysts now expect the central bank to chop its own target policy rate, quite possibly to zero, and give markets new guidance about how it plans to combat the economic fallout from the coronavirus.
The Bank of Japan, which will announce a policy decision next week Thursday after the Fed, announced the unscheduled purchase of 200 billion yen ($1.90 billion) in government debt on Friday. It also said it would inject an additional 1.5 trillion yen in two-week lending in a sign of concern that liquidity could dry up.
Cross-currency basis swap spreads for the yen and the pound fell on Friday after Thursday’s blow out.
The Australian and New Zealand dollars bounced around 1%.
They were mauled on Thursday as investors shunned riskier currencies that are linked to the global commodities trade.
Source: CNBC/Reuters
Comments (88)
chloroquine phosphate tablet hydroxychloroquine interactions hydroxychoriquine
zitromax 500 mg zithromax generic zpack for strep dosage
chloroquine for sale plaquenil medicine what does hydroxychloroquine do
chloroquine and hydroxychloroquine
plaquenil eye exam
trimethoprim side effects in elderly trimethoprim sulfa
modafinil prescription adderall vs modafinil
hydroxicloriquine https://plaquenilx.com/# hydroxychloraquine
chlorowuine https://pharmaceptica.com/
malaria skin rash https://pharmaceptica.com/
what is prednisone used for prednisone medicine
https://modafinilprovigilok.com/ modafinil and alcohol
buy modafinil online modafinil warnings
sulfamethoxazole side effects what does sulfameth trimethoprim treat
modafinil smart drug modafinil 200mg
provigil cost provigil
bactrim trimoxazole syrup uses
buy isotretinoin accutane for acne
roaccutane side effects isotretinoin
modafinil warnings provigil generic
trimethoprim side effects in elderly trimethoprim sulfamethoxazole
accutune what is accutane
prednisona how long does prednisone stay in your system
is bactrim a strong antibiotic bactrim dosing
https://hydroxychloroquineth.com/ hydroxychloride medicine
chloroquine buy chloroquine cvs
cialis without prescription where to buy tadalafil on line
Looking for deals on accutane in South Africa? Check out price of accutane in South Africa for limited-time discounts.
What is the price of Accutane if it is https://isotretinoinex.website/
Curious about how to buy accutane? Check out how to buy accutane for useful guidance.
accutane 5 mg where can i get accutane accutane for cheap
best place to buy accutane uk accutane 20 mg best place to buy accutane online
What is the recommended daily dosage of Accutane for a 100 mg prescription? https://isotretinoinex.website/
accutane 50mg price of accutane
What is the purpose or indication of Accutane? https://isotretinoinex.website/
how much does isotretinoin cost where to buy accutane accutane prescription
Can Accutane be purchased online in a 20 milligram dosage? https://isotretinoinex.website/
buy accutane online fast delivery ipledge accutane accutane 80 mg daily
safe site to buy accutane accutane purchase order accutane online
Is there a 100 milligram dosage of Accutane available? https://isotretinoinex.website/
canada online pharmacy accutane how to buy accutane online accutane prescription nz
Find convenient pharmacy canadian accutane sources at pharmacy canadian accutane and get the medication you need.
buy cheap accutane online generic accutane
What are the potential side effects of taking 80 mg of Accutane daily? https://isotretinoinex.website/
order meclizine sale
meclizine 25mg sale
antivert tablet
meclizine 25 mg ca
buy meclizine 25mg generic
order meclizine 25 mg online cheap
meclizine 25 mg for sale
oral meclizine 25mg
buy generic antivert 25 mg
order meclizine without prescription
cost antivert
buy antivert 25 mg
meclizine pills
cheap meclizine 25 mg
order antivert 25mg for sale
buy antivert online cheap
order meclizine sale
buy antivert 25 mg for sale
antivert 25mg canada
meclizine 25mg brand
Very well presented. Every quote was awesome and thanks for sharing the content. Keep sharing and keep motivating others.
Very well presented. Every quote was awesome and thanks for sharing the content. Keep sharing and keep motivating others.
Pretty! This has been a really wonderful post. Many thanks for providing these details.
This is my first time pay a quick visit at here and i am really happy to read everthing at one place Watch bbcpersian com
I really like reading through a post that can make men and women think. Also thank you for allowing me to comment!
This is my first time pay a quick visit at here and i am really happy to read everthing at one place
I do not even understand how I ended up here but I assumed this publish used to be great
Thank you for great article, look forward to the continuation. dubai racing live 29
Scrap metal transaction transparency Aluminium scrap value addition Aluminium recycling monitoring
Metal recycling processing, Where to sell aluminum cable scrapAluminum cable prices, Metal scrap reclamation plant
Metal reclamation and brokerage Aluminium scrap catalyst recycling Scrap aluminium granulation
Scrap metal recovery methodologies, Aluminum cable scrap import restrictions, Scrap metal reclamation and reutilization
Metal buyback program Aluminium recycling circular economy Aluminium recycling process optimization
Scrap metal reclaiming and recycling center, Aluminum cable scrap yard near me, Scrap metal brokerage
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me? https://accounts.binance.com/bg/register?ref=OMM3XK51
Scrap metal reusability Metal reclaiming and utilization solutions Iron recovery center services
Ferrous material operational efficiency, Iron scrap processing plant, Scrap metal regulations
Metal residue utilization Ferrous material recycling national policies Iron waste reclaiming operations
Ferrous material recycling processes, Iron scrap drop-off, Scrap metal retrieval
Scrap metal scrap yard Ferrous material legislation Iron scrap yard services
Ferrous metal refurbishing, Iron recovery solutions, Metal waste logistics
Scrap metal evaluation Ferrous metal exports Iron scrap reclaiming processing
Ferrous material recycling efficiency, Iron scrap recovery and utilization, Scrap metal transportation regulations
Metal reclaiming facility Ferrous waste reprocessing Iron scrap reuse
Ferrous material recycling collaboration, Iron refining, Environmental metal recycling practices
I am really happy to read this website posts which contains plenty of helpful data, thanks for providing such information.
wow, awesome article post.Really looking forward to read more. Will read on…
многопрофильное медучреждение профилактики и диагностики Москва купить мед справку медицинскую купить мед справку из медцентра
One of the leading academic and scientific-research centers of the Belarus. There are 12 Faculties at the University, 2 scientific and research institutes. Higher education in 35 specialities of the 1st degree of education and 22 specialities.
Francisk Skorina Gomel State University
Hi everybody, here every one is sharing such experience, thus it’s good to read this website, and I used to visit this webpage everyday.
I think this is one of the so much important information for me. And i’m glad reading your article. However wanna remark on few basic things, The website taste is perfect, the articles is actually excellent : D. Good task, cheers