The US dollar weakens 0.5% against the euro and 0.2% against the yen. The Fed pledges aggressive action as economic distress from coronavirus worsens, sparking selling in the dollar. Investors may also be embracing more risk on some promising Covid-19 drug news from Gilead and more reopening plans in Europe, and they seem to be looking past a dismal 1Q GDP report that showed the economy shrinking 4.8%, its fastest pace since the Great Recession. The S&P gains 2.7% and 10-year Treasury yields inch higher to 0.61%. The WSJ Dollar Index falls 0.6%.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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