|Day's Range||0.976 - 0.976|
|52 Week Range||0.9182 - 1.0229|
The dollar traded marginally higher Tuesday, helped by gains against the more defensive currencies, the Japanese yen and the Swiss franc, on the last trading day of the month. At 3:05 AM ET (0705 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 99.597, up 0.3%. “The talk is Japanese names are short of dollars (as the fiscal year comes to an end), which is likely to keep the dollar bid well into London time,” Yukio Ishizuki, FX strategist at Daiwa Securities, told CNBC.
The Swiss government could increase a 20 billion Swiss francs ($21 billion) loan programme to help keep companies afloat and safe jobs amidst the coronavirus crisis, the finance minister told weekly Sonntagsblick. The government has signed off on a 20-billion-Swiss-franc emergency scheme under which companies can get state-backed, no-interest loans of up to 500,000 Swiss francs via their banks. "It is possible that we might have to step this up," Ueli Maurer said in an interview published on Sunday.
The U.S. dollar has continued to push higher Thursday, as investors look for a safe haven amid periods of wild financial market volatility and worries over tightening liquidity. The U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 101.930 up 0.4%, and just off its highest level since the end of 2016. Elsewhere, the Australian dollar skidded to a 17-year low, the New Zealand dollar fell to an 11-year low, while the Norwegian kroner fell over 5% overnight as oil prices crashed.
The U.S. dollar dropped on Wednesday against the Japanese yen and Swiss franc, in line with the stock market's plunge, as fears over the spreading coronavirus pushed investors into safe havens, even as sterling fluctuated between gains and losses after the Bank of England unexpectedly cut interest rates. Central banks and governments around the world are scrambling to limit the economic damage of the coronavirus outbreak, which has sent stock markets into a tailspin as investors head for the safety of government bonds. Investors were also disappointed as President Donald Trump made no major announcements on stimulus measures.
The dollar posted sharp gains on Tuesday against the safe-haven Japanese yen and Swiss franc, rebounding from the prior day's huge losses, as investors hoped global monetary policymakers will launch further stimulus plans to ease the economic impact of the coronavirus outbreak. The U.S. stock market also rebounded Treasury yields rose across the board, as the market anticipated a news conference by U.S. President Donald Trump on economic measures in response to the virus. Also, indications of further stimulus efforts by some governments helped steady the market after Monday's gyrations.
The U.S. dollar fell across the board on Tuesday after the U.S. Federal Reserve cut interest rates in an emergency move designed to shield the world's largest economy from the impact of the coronavirus. "The virus and the measures that are being taken to contain it will surely weigh on economic activity, both here and abroad, for some time," Powell said in a news conference shortly after the central bank said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%. While the U.S. has room to cut interest rates, other developed economies have already slashed rates to record lows and may be hesitant to reduce them further.
Investors are nervously looking at the bankers’ printers awaiting the fresh stream of money. That is the world that we live in after the 2008 and we just have to accept it.
Based on the early price action and the current price at 99.235, the direction of the March U.S. Dollar Index the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at 99.200.
Stronger dollar helps USD/CHF pair advance to new trend highs, with signs of more upside to go.
USD/CHF pulls back after the hitting 50% retracement level on the upside. A deeper pullback will setup new possibilities for entry as targets remain higher.
USD/CHF has further to go on the upside following a bottom breakout this week in the pair. Weakness can be used to accumulate given upside targets.