It was chop city for the U.S. dollar has historic oil price movements sparked a roller coaster ride in global risk sentiment, U.S. economic data continues to disappoint, and the U.S. approves more massive stimulus measures to keep the economy alive.
In the end, the Greenback comes out a net winner, likely on some mix of negative global risk sentiment driving flows into the U.S. and the possibility of the U.S. economy slowly reopening.
United States Headlines and Economic data
Global risk aversion sentiment dominates the markets, sparked by the historic crash in oil, to give the U.S. dollar a mostly positive start to the week against the majors.
It looks like the Greenback topped out for the week during the Wednesday session, correlating with the improving global risk sentiment as oil bounced back from it’s historic crash earlier in the week.
A combination of more stimulus from the Fed and U.S. government, weak U.S. survey data, plus a continued recovery in oil prices were likely the catalysts for the Greenback’s move lower on the session.