2020.04.2210:07:00UTC+00U.S. Dollar Falls On Hopes Of Easing Lockdown Restrictions

The U.S. dollar drifted lower against its major counterparts in the European session on Wednesday on improved risk sentiment, as some countries in Europe are considering to relax COVID-19 restrictions.

Italian Prime Minister Giuseppe Conte has convened a taskforce comprised of leading economists and health experts to weigh all the pros and cons of easing restrictions.

"I would like to be able to say, let's open everything. Right away," Conte wrote on Facebook. "But such a decision would be irresponsible."

Elsewhere, Spain aims to begin winding down its coronavirus lockdown in the second half of May, Prime Minister Pedro Sanchez said today.

"We will be going back-and-forth depending on how the pandemic evolves," he said.

In France, the government has said restrictions will be gradually lifted from May 11.

The greenback edged down to 0.9683 against the franc, from a high of 0.9705 seen at 12:30 am ET. The greenback is seen finding support around the 0.94 mark.

The greenback weakened to 107.51 against the yen, from yesterday's closing value of 107.75. If the greenback falls further, 106.00 is likely seen as its next support level. The greenback dropped to 1.0874 against the euro, after rising to 1.0845 at 12:30 am ET. The greenback is seen locating support around the 1.10 mark.

The greenback slipped to 1.2344 against the pound, reversing from a high of 1.2275 logged at 12:30 am ET. Further drop in the greenback may face support around the 1.26 area.

Data from the Office for National Statistics showed that UK inflation slowed to a three-month low in March.

Consumer price inflation eased to 1.5 percent in March from 1.7 percent in February. This was the lowest rate since last December, when prices were up 1.3 percent. The rate came in line with expectations.

After gaining to 1.4238 against the loonie and 0.5948 against the kiwi in early deals, the greenback declined to 1.4139 and 0.5999, respectively. The next possible support for the greenback is seen around 1.33 against the loonie and 0.64 against the kiwi.

The greenback fell back to 0.6347 against the aussie, heading to pierce its Asian session's 2-day low of 0.6350. The greenback may face support around the 0.70 region, if it falls again.

Looking ahead, Canada CPI for March and U.S. FHFA's house price index for February are due out in the New York session.

At 10:00 am ET, Eurozone consumer sentiment for April will be featured.