22/ 04/ 2020

Dollar Firm While Oil Remains Under Pressure

The dollar and yen held broad gains on Wednesday, as a bounce in oil prices failed to calm market nerves, with the week’s rout and frail fuel demand underlining a grim outlook for the global economy. The greenback sat just below a two-week peak against a basket of peers, and barely budged against commodity currencies whacked by the oil collapse, even as U.S. crude jumped 20%. The safe-haven Japanese yen held at 107.83 per dollar and both the U.S. currency and yen were steady against the oil-sensitive Canadian dollar and Norwegian krone. The Australian dollar battled to pull ahead.

The recovery in U.S. crude lifts it out of negative territory, but at just shy of $14 a barrel, it is still some 80% under January’s peak as cratering energy consumption due to coronavirus lockdowns creates a supply glut. The plunge has soured appetite for risk and seems to have halted a rebound in stock markets as investors brace for a longer and slower global economic recovery. The greenback has gained half a percent this week on a basket of currencies and stands near multi-week highs against currencies of oil exporters such as Russia, Norway and Canada.

Crude oil prices give commodity currencies an early boost ahead of inflation figures later today that put the GBP and Loonie in focus.

21/ 04/ 2020

U.S. Dollar Gains on Bearish Oil Trends while Pandemic Grows

The dollar resumed its climb against currencies of oil producers on Tuesday, as investors remained skittish after a historic plunge in U.S. crude futures to below zero and shied away from risk even as the benchmark bounced back.
Concerns about the health of North Korean leader Kim Jong Un following media reports that he was receiving treatment after undergoing a cardiovascular procedure also supported the dollar.
U.S. crude oil futures plunged into negative territory for the first time ever on Monday, dragged by a supply glut and sagging demand due to the coronavirus pandemic, though they managed to scrape back into positive territory early Tuesday.
“Oil is off its lows, but a lot of companies are going to get hit and companies could start to fail” stated by a senior Analyst in Wall Street. 
“If share prices have a pullback, the dollar could see some gains as a safe haven. The only thing that’s capping the dollar is the Federal Reserve has done more quantitative easing than anyone else.”
Factory closures and travel curbs enforced to slow the pace of new infections have triggered a collapse in oil prices, which is drawing money from commodity currencies and other risk asset to the safety of dollar-denominated assets.

20/ 04/ 2020

Week Ahead | Dollar Strengthens on Hopes of Market Re-Start Imminent Across US

The dollar found support on Monday as global growth fears hit oil prices and commodity currencies, while the New Zealand dollar rose on news that the government will begin to relax strict virus containment measures from next week.
Last month global oil prices fell more in one day last month than they had in nearly 30 years with the culmination of a series of unfortunate events spurred by the spread of the novel coronavirus. This week began with a bang for the oil markets. On Sunday the members of OPEC+ struck a historic deal to slash production by a whopping 9.7 million barrels in May and June in an attempt to rescue oil prices from the depths of the current oil price crash.
Moves in other majors were modest, but together with cautious trade in regional equities markets seemed to cap a few weeks of risk appetite and dollar softness.
An almost 12% drop in Japan’s exports in March reported on Monday, the steepest slump in nearly four years, augurs badly.
In the United States, where the death toll rose to more than 40,000 on Sunday, state governors have sparred with President Donald Trump over virus testing capacity and how quickly their economies can re-open.

15/ 04/ 2020

Delma Exchange | The Way Ahead..

Over the past few weeks, the coronavirus (COVID-19) pandemic has left the entire world living a new reality. As the UAE government implements measures to contain the spread of COVID-19, first-essential services like money transfers and commercial remittances will remain available across the UAE and we are here to reassure you that you can count on us and our services during these trying times. 

Our top priority is the health and safety of our employees, clients, and partners. We have adapted to the changing environment very quickly and our services will continue to be accessible. We have a robust action plan in place, we have implemented specific precautions for the IT operations and development teams to ensure continuity. As of this week, most office-based workers have moved to work from home and retail employees are receiving updated guidelines and protocols to protect their health and that of their customers.