Market sentiment improved late in the US session yesterday, with Wall Street aided by technology stocks. Investors may have turned their gaze back to the easing of the “stay at home” measures, adopted due to the fast spreading of the coronavirus. Overnight, the RBA decided to keep interest rates unchanged. Officials announced they have scaled back the size and frequency of their bond purchases, but they added that they are prepared to scale-up these purchases again if deemed necessary.
RISK ASSETS REBOUND, SAFE HAVENS SLIDEThe dollar reversed and traded lower against most of the other G10 currencies on Monday and during the Asian session Tuesday. It gained slightly only against EUR and CHF. The main gainers were NOK, AUD, SEK, and NZD in that order, while the currencies against which the greenback lost the least ground were GBP and JPY.
USD performance G10 currencies
The relative weakness of the dollar and the other safe havens, franc and yen, combined with the strengthening of…