By Gina Lee
- Risk currencies rose on Thursday as the COVID-19 pandemic is predicted to peak in New York and the United Kingdom.
This comes as New York state reported its highest death toll overnight.
“New York reported its biggest death toll while infections hit the highest level in four days in Spain and three days in Italy,” Tohru Sasaki, head of Japan market research at JPMorgan (NYSE:JPM), told CNBC. “All these are negative but forecasts both from governments and experts that the peak could come within days are leading markets not to focus on those details.”
The U.S. Dollar Index that tracks the greenback against a basket of other currencies slipped 0.02 to 100.145 by 11:39 AM ET (4:39 AM GMT) as investors eased safe-haven pressure on the greenback ahead of the expected peak.
Meanwhile, U.S. unemployment data to be released later today is expected to show that 5.25 million Americans claimed unemployment benefits last week. They will join the almost 10 million Americans who have submitted claims since the end of March.
“Markets already know that the economy is being hit by extraordinary shocks,” said Sasaki. “Even if the [unemployment] number increases, it will probably surprise few people while a better reading could enhance the perception that the worst may be over and trigger a bigger market reaction.”
Meanwhile, the AUD/USD pair gained 0.15% to 0.6236 and the NZD/USD pair jumped 0.21% to 0.6017.
The pair also received a boost from a jump in oil prices as Russia agreed to cut production overnight and amid investor hopes on a scheduled OPEC+ meeting later in the day reaching an agreement.
The USD/JPY pair was up 0.12% to 108.94 while the USD/CNY pair gained 0.08% to 7.0675.
The GBP/USD pair gained 0.11% to 1.2399 as Prime Minister Boris Johnson remains in stable condition in his third day in the intensive care unit to treat his COVID-19 symptoms.
