Euro FX Futures Market News and Commentary
The dollar index (DXY00) on Friday fell -0.996 (-1.00%). Jun euro-fx futures (E6M0) closed up +0.0077 (+0.69%), and EUR/USD (^EURUSD) rose +0.0093 (+0.84%). Jun yen futures (J6M0) closed up +1.27 (+1.38%), and USD/JPY (^USDJPY) fell -1.65 (-1.51%).
The dollar index on Friday dropped to a 1-1/2 week low concern the coronavirus pandemic will last longer than initially feared and keep the U.S. economy partially shutdown after cases of the coronavirus in the U.S. surpassed cases in China. Also, strong year-end demand for the yen was bullish for the yen.
The dollar has been under pressure the entire week on the unprecedented measures taken by the Fed to pump dollars into the global financial system. The Fed has implemented an unlimited QE program and multiple targeted-lending programs to boost liquidity and provide loans to troubled sectors of the financial market and economy. Also, the Fed's new and expanded dollar swap lines with most major foreign central banks are succe... Read more