Dollar Index Extends Gains as Risk Sentiment Softens

Dollar Index Extends Gains as Risk Sentiment Softens


The dollar index, which measures the greenback against a basket of major currencies, edged higher for the fifth consecutive day to 100.87, heading towards posting a weekly gain. The risk sentiment took a hit and urged the demand for safety following a report stating that Gilead's Remdesivir failed to improve patients' conditions. On the other hand, the dollar earned a boost from the sluggish economic conditions in rival economies. The EURUSD dropped to a one-month low of $1.0726, the GBPUSD eased to 1.2304, and the USDJPY continued to trade in a tight range near 107.70 awaiting fresh drivers. Market participants are looking forward to US durable goods orders and the University of Michigan's economic indicators.


Major US stock-index futures pared gains as risk appetite faded as investors focus on the probability of reaching a coronavirus treatment. Stock benchmarks were outperforming supported by the rebound in oil prices, and the new stimulus package aiming at supporting small business. However, the financial times reported that Gilead's Remdesivir failed to improve patients' conditions, citing documents accidentally published by the World Health Organization on a clinical trial in China. Gilead responded that the trial was stopped due to low enrollment and couldn't offer meaningful conclusions, but their response failed to lift the market again. The Dow Jones Industrial Average futures dropped to 23154, the S&P500 futures declined to 2754, and Nasdaq futures fell to 8497.


Gold prices settled higher for the second consecutive day supported by the deteriorating economic outlook as covid19 continues to suspend the economic activity, and by the monetary and fiscal stimulus packages around the world. The price of a gold ounce hit a ten-day high of $1738, the price of a silver ounce rallied to $15.44, and palladium futures managed to recover to $2020.


Oil prices continued to recover from steep losses supported by producers' willingness to cut production. Top oil producers started easing their output to offset the drop in demand, instead of waiting till May 1st as agreed in OPEC+ deal. Moreover, the free fall in prices forced some production operations shutdown. The Baker Hughes oil rig count fell sharply in the prior weeks. Market participants are looking forward to the latest reading to be published later today. The West Texas Intermediate crude June contract rose to $17.93, and Brent June contract rose to $22.67.

Major Economic Events

GMT Country Event Expectation Previous



 Durable Goods Orders (MoM) (Mar)





 Michigan Consumer Expectations (Apr)





 Michigan Consumer Sentiment (Apr)





 U.S. Baker Hughes Oil Rig Count




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