The dollar/yen pair was last up by 0.1% at 108.79.
The euro hit an 11-week high of $1.1125. This was due to expectations that policymakers will support the weakest economies of the eurozone by purchasing debt. Thus, the euro was last up 0.4%. This is the longest winning streak, seven days, in fact, that we have seen since December 2013.
So, the dollar is currently struggling.
Against the Swiss franc, the euro also rose to $1.0797. This is the highest indicator we have seen since January 14; trading was last up by 0.4%.
As reported by HIS Markit’s Final Composite Purchasing Managers’ Index (PMI), the euro disregarded a contraction in economic activity in May.
The number of people that lost their jobs in the eurozone in April was 211,000. Thus, it brought the total number of unemployed to 11.919 million. Or in other words, this would be 7.3% of the workforce, up from 7.1% in March.
Dollar and Others
Nevertheless, investors care about the possibility that the European Central Bank will increase its $839.25 billion (750 billion-euro) program of bond-buying when it will have a meeting on Thursday. This is the Pandemic Emergency Purchase Program.
The European Commission proposed a 750 billion-euro recovery fund. Investors hoped that this plan would soon take form and bolster the worst-performing countries in the bloc.
Kit Juckes is a macro strategist at Societe Generale. Juckes said he is warier of the euro than some other currencies. This is because he doubts the implementation of the recovery fund can continue to inject liquidity into markets.
In the offshore market, against the dollar, the Chinese yuan rose to a nearly one-month high of 7.0883. China was the first major economy that eased strict lockdown restrictions. This meant it could recover quicker than in other countries.
Against the United States dollar, the Norwegian crown hit a three-month high of 9.4735. It last traded up by 0.8%. Thus, in the G10 space, the currency is so far the best performer.
This is the current news of the market. Let’s see what will happen with the dollar.