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5th May Market Update: USD And Safe-Haven Assets Recovering

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Image source: Pixabay

(5th May 2020) Looking into the first week of May, let’s recap some movements from last month and how it affects the market ahead.  In essence, its estimated that the Dollar is going up and spot gold is recovering as well.

USD

Last week the USD Dollar Index (DXY) that measured USD’s value against the other currencies had traded lower for 6 consecutive days from a high of 100.32 down to 98.7, showing the weakening of USD during the lockdown. However, today signals the start for some states re-opening and the market is responding well to it, the index rose to 99.43 (06:18 EET).

  • USD/CNY stagnate around 7.0601 after the drop last week
  • USD/JPY  fell to 106.620  from 106.882 after the rebounce last Thursday
  • EUR/USD fell to 1.09063 from its peak of 1.10195 last Friday
  • AUD/USD recovered slightly to 0.64440 after the huge drop last Thursday  
  • NZD/USD slided to 0.60623 from its peak of 0.61761 last Thursday 
  • GBP/USD dropped to 1.24615 from its peak of 1.26432 last Thursday 

Data from Tradingview.com

GOLD

Due to diminishing fears on the Corona pandemic, gold (XAUUSD) as a safe-haven asset was weak and slumped down to 1670.909 last week, only to recover slightly on Friday.  Due to President Trump’s comment that caused the tension to grow between US-China, this might cause gold’s price to appreciate.

  • XAU/USD grows to 1698.972 from the closing of 1686.618 last Thursday

Data from Tradingview.com

sources:

<https://www.forex.com/en/market-analysis/latest-research/weekly-update/>,<https://www.forex.com/en-us/market-analysis/latest-research/gold-intraday-rebound-thanks-to-donald-trump/>,<https://www.investing.com/news/forex-news/dollar-upwithescalation-of-uschina-tensions-2159247>

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