Conditions in the United States and Other Market Changes

Conditions in the United States and Other Market Changes

Let’s check the market. Since May 2018, speculators’ net short United States dollar positioning in the last week touched it’s higher.  On Friday, the United States Commodity Futures Trading Commission data and Reuters calculations were released.

The cost to swap euros into dollars on a three-month basis eased, as leveraged funds expect the United States currency to weaken. Thus, it showed “less pressure” on the sterling, euro, and yen. Harvey Simon is a Monex Europe analyst. He said that all that happened because of funding dollar requirements.

Rates of dollar borrowing via the 3-month euro-dollar forex swap fell to a low of 12-year of minus 65 basis points. It indicated that European borrowers could borrow the dollar at a discount.

Two weeks earlier, that rate swung to a 2011 European crisis-era high of more than 150 bps.

Nevertheless, Harvey says that the funding strain is still there.

Versus the Swiss franc at 1.0569, the euro was up by 0.1%.

The United States and Others

Data showed on Monday that last week the amount of cash that domestic, commercial banks hold with the Swiss National Bank (SNB).

Against the euro, the pound was up 0.3% at 87.89 pence. Moreover, against the greenback, it was up 0.2% at $1.2292. Nevertheless, reports indicate that Boris Johnson, UK Prime Minister, has been hospitalized with persistent COVID-19 symptoms.

On Monday, against most currencies, the United States dollar stalled. Nonetheless, it continued to rise against the Japanese yen. Investors digested the fact that the rate of fatalities from the coronavirus in Europe slowed. Nevertheless, they accelerated in Japan and Asia.

The yen fell, while the Australian and New Zealand dollars rose. The Kiwi and Aussie tend to benefit from the sharper risk appetite while the traders are getting back to risk-oriented strategies.

Kit Juckes is the SocieteGenerale’s macro strategist. He said that the forex implications are that as the virus of Japan’s situations worsens, equities bounce.

This is the leading news of the market.


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