US dollar is losing value as investors become more optimistic
US dollar is losing ground on forex market on April 7. The investors are becoming less risk-averse because of the idea, that the virus is beginning to level off in Europe and the United States.
At 0710 GMT the US Dollar Index has lost 0.5% and ended up at 100 235. USD/JPY trading pair has lost 0.3, ending up at 108.88. British pound has also gained ground againt the dollar, moving up 0.7%, despite being impacted by the worsening condition of the Prime Minister Boris Johnson.
Investors are getting ready to move out of US dollar’s safe haven. The sentiment on the market is optimistic, since the COVID-19 pandemic is beginning to show signs of levelling off. Death toll and the number of new cases in Spain and Italy continue to be low for almost a week. In New York, which has become an epicenter of the pandemic in the US, the rates have also been flat for two days.
US dollar is also impacted by the oil crisis. The meeting between Russia and Saudi Arabia concerning the crude production has been postponed and the situation on the market remains indecisive.