European session review: USD strengthens on renewed demand amid intensified economic worries

USD strengthened against most other major currencies in the European session on Monday, paring some of its losses from last week, as demand for safe-haven currencies renewed as concerns about the economic impact of the coronavirus heightened as governments around the world continue to tighten lockdowns to fight the virus. The U.S. Dollar Index (DXY) rose by 0.6% to 98.96. Another safe-haven currency JPY was little changed at 108.07 yen per dollar.

According to the latest data compiled by Johns Hopkins University, coronavirus cases around the world climbed to 735,560. This added to the uncertainty over when the lockdowns will be removed and the economy can return to normal. The U.S. leads the world in reported COVID-19 cases with more than 143,000.

The U.S. President Donald Trump signed into law Friday afternoon a massive $2 trillion stimulus package designed to respond to the economic fallout from the coronavirus pandemic after the House lawmakers voted to approve it earlier in that day. The vote in the House happened after the package was unanimously approved by the Senate on Wednesday. The key elements of the package include $250 billion in direct payments to individuals and families, $350 billion in small business loans, $250 billion in unemployment insurance benefits, $500 billion in loans for distressed companies, $130 billion in funding for hospitals as well as $150 billion for state and local governments.

On Sunday, Trump extended the national social-distancing guidelines to April 30 and said the coronavirus outbreak in the U.S. was likely to peak in two weeks.