The US Dollar is poised to record its best weekly outcome later today as the falling price of oil weighed heavily on currencies that are commodity-linked. The US Dollar Index, which is trading higher at 100.5800 .DXY, was earlier at a 2½ week peak; this week, the Index has appreciated nearly 0.8%. Currencies that are sensitive to oil prices include the Canadian Dollar and the Norwegian Krone, but the Aussie and Kiwi Dollars are also sensitive to risk. Concerns over the worsening global impact of the Coronavirus from an economic standpoint are also of paramount importance for FX traders.
As of 10:40 am in Tokyo, the USD/CAD was trading at C$1.4081, up 0.01% and off the session peak of C$1.40901. The USD/NOK was trading at 10.6194 Norwegian Krone, a loss of 0.1038% and off the session trough of 10.59443 Norwegian Krone. The AUD/USD was trading at $0.6358, down 0.2417% while the NZD/USD was at $0.5991, a loss of 0.2531%.
Fundamental Look Ahead
Later today, markets will be looking to retail sales data from the UK; analysts are predicting a significant fall in the month of March, down to -4.7% on a year-over-year basis. In Germany, the IFO surveys will provide an indication of business sentiment; the current assessment and business climate are predicted to fall to 80 and 81, while expectations could take a sharper downturn to a reading of 75. In the US, markets will be looking for news on durable goods-orders. The latest survey suggests that the non-defense capital goods orders (excluding aircraft) will have fallen to -6% in March.