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Tuesday's European session review – USD continues to rebound

Tuesday’s European session review – USD continues to rebound

31-03-2020 08:40

The dollar ended its decline since last week. Most of the analysis believe that the long term worries about the new coronavirus have supported the dollar.

The dollar continued to be go upward in the Asian session on Tuesday, rising to 99.5 level. Some analysts also believe that factors such as settlement at the quarter end, investment portfolios reallocation and technical correction supported the dollar’s recovery.

ZFX analyst Jacob Leung said that even though the financial market sentiment seems to be improving, the volatility is still quite high, causing tensions among investors. The coming data announcement this week would be highly uncertain which may be bullish for the dollar.

Oil prices further bounced in the Asian session, WTI trading above $23, after China PMI figures which were better than expected. US President Trump said on Monday that he had a phone call with Russian President Putin to discuss oil prices issue. It is reported that the US and Russia have agreed to keep communication regarding oil market stability. Even though there is no more detail disclosed, the market still believes that the US will be more active to involve in the oil market which help on stabilizing the oil price.

The Asia-Pacific region ’s stock market was mixed on Tuesday, which only Hong Kong HSI performed well, rising more than 400 points, closed 1.85% higher.

It is reported that the US government are drafting a new economic stimulus plan to deal with the impact of the US economy hit by the epidemic. “Bloomberg” quoted information that White House officials have drawn up a list of about $600 billion in accordance with the needs of various government agencies, including providing more funding to state governments, supporting the mortgage market and tourism.

US stock futures are currently higher, with the Dow futures rising more than 100 points, mainly reflecting a better sentiment from the news.