The greenback edged broadly higher during London trade on Tuesday as FX traders sought out the currency as a safe haven after yet another rout in oil prices. On Monday, prices in the US futures market for crude oil moved into negative territory, largely on the backs of a significant drop in global demand and a supply glut. As a result, currencies which were linked to oil prices, such as the Canadian Dollar and the Norwegian Crown, were among the worst performing in today's trading session. The Euro is also under heavy pressure as FX markets consider that the Eurozone is likely to have to borrow funds to ensure the recovery against the Coronavirus is able to continue.
As of 11:26 am in London, the USD/CAD was trading at C$1.4254, a gain of 0.82%; the pair has ranged from a session peak of C$1.42659 to a low of C$1.41126. The USD/NOK was trading higher at 10.6221 Norwegian Krona, a gain of 1.7176, moving off the session high of 10.69633 Norwegian Krona. The EUR/USD was lower at $1.0831, down 0.334%.
Data Drives Sentiment in UK and EU
In the UK, the latest labor reports were worse than analysts had anticipated. The UK Office of National Statistics reported that the ILO Unemployment rate rose to 4% against a projected rise to 3.9%. Average Earnings for the 3-month period through to February fell to 2.9% and 2.8%, excluding and including bonuses, respectively; analysts had predicted a slight fall to 3% in both cases. In Germany, the ZEW surveys for the current situation came in with a reading of -91.5 against an expected fall to -77.5 (from -43.1). The EUR/GBP was trading at 0.8781 Pence, up 0.5416%, after the news.