What you need to know on Wednesday, April 7:
The dollar balanced between gains and losses during the first half of the day, but resumed its decline during US business hours. The weakening of US Treasury yields weighed on the dollar as the yield on the benchmark 10-year Treasury bond fell to 1.65%.
The EUR / USD pair advanced to 1.1870, its highest level in two weeks. The pound lagged behind, unexpectedly falling against the dollar towards the 1.3810 region after hovering around 1.3900 earlier in the day.
The Aussie advanced against its American rival, but the loonie remained under pressure. Gold rose further, hovering above $ 1,740 a troy ounce, while crude prices fell after the U.S. Energy Information Administration raised the forecast for global oil demand growth by 2021 at 180,000 barrels per day (bpd) to 5.5 million bpd. By 2022, the EIA lowered its forecast for global oil demand growth by 180,000 bpd to 3.65 million bpd.
USD / JPY and USD / CHF declined, undermined by falling government bond yields.
The International Monetary Fund improved its forecast for global economic growth to 6.0% from 5.5% in January, but warned of growing inequality and divergence between advanced and developing economies.
The head of the European Medicines Agency’s vaccine strategy said there is a link between the AstraZeneca coronavirus vaccine and rare blood clots, but reiterated that the benefits of the injection to protect against the coronavirus outweigh any risks. Later in the day, the agency denied finding a causal link and said the review is ongoing.
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