The US Dollar edged lower against most rivals during Monday trade as sentiment improved for higher risk currencies after some quarantine restrictions were eased in a number of countries, including Australia and Germany. The numbers are showing that the lockdown measures are working in many areas, and there are considerations that the governments may ease some of the restrictions against small business concerns in those countries. In Japan, the central bank there expanded its stimulus efforts and pledged to purchase unlimited bonds to ensure low borrowing costs.
As of 11:17 am in London, the USD/JPY was trading at 107.1630 Yen, down 0.30% and off the session high of 107.685 Yen. The EUR/USD was higher at $1.0849, up 0.2291%; the pair has ranged from a trough of $1.0811 to a peak of $1.08597. The GBP/USD was higher at $1.2432, off the session peak of $1.24556
Central Bank Meetings in Focus
Though the Coronavirus will continue to be prominently considered, in the near term the upcoming policy meetings by the Federal Reserve and then the European Central Bank will draw market focus. The US central bank is largely expected to maintain the status quo, which is not expected to negatively impact the Dollar any more than it already has. The same can't be said about the Euro when the ECB meets on Thursday. Analysts believe that the central bank will expand its debt purchase program which could include poor quality or “junk” bonds. Analysts are concerned that this decision might expand the already wide chasm between some members of the EU.