Despite weak unemployment data, contraction in the US service sector and Coronavirus cases reaching 1.25 million, the US dollar is outperforming major currencies. Investors prefer US dollar amid the COVID-19 crisis across the globe. US service sector data revealed a significant slump from 52.5 to 41.08, the biggest contraction since 2009.
CAD Gains as Crude Oil Prices Rise
Canadian Dollar gained on account of rising crude oil prices. Oil prices increased today as economies across the globe begin to open. A mismatch remains in demand and supply of crude oil, but experts suggest that in the coming future, oil refineries to run smoothly and US production cuts will help get stable.
Unemployment Data
3.169 million people filed for US unemployment benefits last week. Continued unemployment claims increased to 22.6 million. Unemployment data put further pressure on USD against major currencies. However, Euro declined against USD in the morning session but gained ground and rose back to 0.93 level against USD. Further, GBP and AUD also weakened against USD.
Brent Crude
Brent crude oil increased by 1.75% to a total of USD 30.24 after marking a drop of around 4% yesterday. US WTI saw a growth of 1.96% to settle at USD 24.46 per barrel after dropping 2% in the last session.
OPEC+ agreed to a production cut of around 10 million BPD for stabilising the production and prices in response to low demand due to the spread of Coronavirus outbreak.
Gold Seen as Safe-haven
Weak economic growth and the falling stock market helped Gold rise today. In this uncertain market scenario, investors across the world see gold as a safe-haven investment. Prefer gold against low currency settlement and inflation.
Spot gold rose 0.2% to USD 1688.55 per ounce and US Gold futures increased by 0.2% to a total of USD 1691.60 per ounce.
Economic growth is weak and slow equity market conditions helped US Dollar gain and Gold price to increase.