The best performing currency this week is beyond a doubt the US dollar. Not only is the American dollar well-supported by positive economic reports from the United States, but it is also exposed to less risk in terms of the coronavirus, and it is not dependent on oil prices at all.
In contrast, currencies such as the Australian and Canadian dollar have weakened because oil prices crashed so quickly with the coronavirus outbreak due to a much lower demand for oil from China. An emergency move by OPEC to cut production output by 600,000 extra barrels per day did not do much to stabilize oil prices.
Right now, the currencies of developing countries such as Brazil, Thailand, and Russia are ripe for exploitation, as they are all losing positions against the dollar quite rapidly.
Moreover, today we expect some key employment data from the United States, including payrolls and the latest unemployment rate report. Both publications could boost the value of the US dollar further if they exceed expectations.
On the end of the spectrum, stock markets are marking losses today due to the overwhelmingly positive response earlier this week when news broke out that there may be a vaccine for the virus in the making. We are likely seeing the markets correcting their earlier growth, which doesn’t mean investors are any less optimistic right now.
