US Dollar spikes to one-week peak as dismal data spur up safe-haven bid

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US Dollar spikes to one-week peak as dismal data spur up safe-haven bid

On Thursday, the 16th of April 2020, the American Dollar Index (DXY) measured against a bucket of six major currencies rose as much as 0.45 per cent to round off the day at 100.10 after hitting an intra-session high of 100.30, as investors appeared to be on their heels in a ‘flight-to-safety’ response following release of a series of bleaker-than-expected US economic data which eventually had ramped up safe-haven bid for the American Dollar.

In point of fact, Thursday’s (April 16th) unprecedented rally of American Dollar comes over the heels of a cascade of dismal data including a 74-year-low US factory output alongside a 7.3 per cent monthly slump of US retail sales released yesterday (April 15th), while spurring up investors’ frets further Thursday’s (April 16th) US Labour Department data had released more than 22 million people had applied for initial jobless benefits since March 21st, raising the stakes higher of a steeper US recession which analysts said could have been much worse than the Great Financial Depression of 2007-2009.

Amid such a complete chaos in the FX market with White House’s repeated urge to reopen the economy within May 1st seemed to have prodded a rush on to US Dollar purchase, while citing a long road to recovery from the financial fallouts of the pandemic, a senior market analyst at Western Union Business Solution, Joe Manimbo said on Thursday (April 16th), “The dollar has fared better this week as record weak data suggested a longer and more uncertain road to recovery, a dimmer outlook that’s revived appetite for haven assets.

” Citing statistics, on Thursday’s (April 16th) market closure, the safe-have Japanese yen lost 0.23 per cent against its American counterpart, while oil-dependent Canadian Dollar shed 1.66 per cent to $1.4114, British Pound lost 0.86 per cent to $1.2516 and euro erased 0.66 per cent to $1.0909, Aside from that, against riskier bets such as Australian Dollar, the American currency gained as much as 1.95 per cent to wind down the day at $0.6319.