(01 MAY 2020)DAILY MARKET BRIEF 2:Gold to the downside

<p>The US dollar came under a strong selling pressure on the back of dire economic data and further easing from the Fed. The US 10-year yield was little changed near 0.62%.</p>
<p>Elsewhere, the European Central Bank (ECB) maintained its key interest rates unchanged at Thursday’s meeting, but pulled the interest rate on TLTRO III operations down by 50 basis points and announced that it could expand its Pandemic Emergency Purchase Program (PEPP) if needed. The latest data suggested that at the current pace of buying, the program should reach its limits by October this year. Hence, we could expect an announcement of up to 500-billion-euro expansion this summer.</p>
<p>The EURUSD saw support near the 1.0830 mark, as investors were pleased with the ECB’s commitment to boost the economy, which it expects to shrink between 5% to 12% this year. The ECB is again filling the gaps that the fiscal policies leave open.</p>