Since Friday, not much changed in the international exchange market. After an active job on Thursday, the Australian dollar erased gains. The Aussie traded last at $0.6843. It is heading for a fourth consecutive week of losses.
Christine Lagarde is the President of ECB. She said that risks to eurozone growth remained tilted towards the downside. Her tone towards the market was dovish.
FX strategist, at Commerzbank AG based in Frankfurt, Thu Lan Nguyen, shared his thoughts. He said that sentiment had steadied overnight, from the Swiss franc’s weakness against the dollar and the euro with markets firmly focused on the PMI data.
The critical data, the eurozone, and the German PMI figures will most probably arise from previous readings. The higher-than-expected readings might trigger a rally.
Investors’ attention is now at the flash PMI releases for January. The statements are some of the first indicators of how the global economy performed moving into 2020.
Dollar and Euro
The euro against the dollar fell to $1.1049. The dollar against the British pound was near a five-week low.
For the third consecutive weeks of gains, the dollar index was on track and held at 97.717.
Kazushige Kaia is the head of foreign exchange at State Street Bank. He said that some people forecasted that Lagarde would talk about the possibility of policy normalization. Late last year, Riksbank ended with a negative interest rate. Nevertheless, there was no such indication from her.
To summarize the situation, it’s not very harmful. The dollar was on track, and the euro fell against the dollar.