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US Dollar Mixed Ahead of FOMC Minutes

USD - United States Dollar

The US Dollar fell through trade on Tuesday, succumbing to improving demand for risk and signs the fight against the coronavirus is finally beginning to shift. Spain, Italy and the UK, three of the hardest-hit European countries, all reported declining infection and fatality rates. At the same time, New York governor Andrew Cuomo announced they are nearing the peak of the curve. The dollar index fell 0.8%, moving back below 100 to touch 99.92 when valued against a basket of currencies. The FOMC will release the minutes of is scheduled March meeting. Market participants will get a chance to comb over the minutes of the emergency meeting in early March, which came two days early of the scheduled meeting. They may not offer much insight as the economic landscape has again changed over the last few weeks due to the global COVID-19 pandemic.
The Euro pushed through 1.09 while the pound moved back through 1.23, testing another break above 1.24 despite uncertainties surrounding Boris Johnson's conditions and the stability of government in his absence. Johnson spent a second night in intensive care after his condition worsened at the weekend, calling in Dominic Raab to deputize as he battles the virus.

Key Movers

Attentions remain affixed to signs of improvement in the fight against coronavirus with the USD underpinned by the continued uncertainty. We expect investors to remain wary of extending risk plays in the face of the ongoing coronavirus lockdown with demand for risk mostly subdued through the weeks ahead.
Pound sterling remains focused on the news around the UK prime minister, Boris Johnson's stay in the intensive care unit of St Thomas' Hospital in London. He spent his second night in ICU last night, and his third night in the hospital. Downing Street has stated that his condition is "stable" and that he remains in "good spirits."
Foreign Secretary Dominic Raab, who is deputizing for the prime minister, has said he was "confident" the PM would recover from this illness, describing him as a "fighter." Speaking at Tuesday's Downing Street coronavirus briefing, he said Mr. Johnson was receiving standard oxygen treatment and was breathing without any assistance, such as mechanical ventilation or non-invasive respiratory support. This gave sterling some of the confidence it was thriving for, and we hit a two day high versus the USD to 1.2366.

Expected Ranges

EUR/USD: 1.0829 - 1.0896 ▼

GBP/USD: 1.2288 - 1.2419 ▲

USD/CAD: 1.3990 - 1.4082 ▲

AUD/USD: 0.6115 - 0.6239 ▲

NZD/USD: 0.5940 - 0.6030 ▲