The Euro, The United States Dollar, Geopolitical Tensions

Recent data showed that British retail sales rebounded more strongly than forecast last month. Moreover, as debt exceeded economic output, public borrowing hit a record high. Trade talks with the European Union were also in the spotlight.

Amelie de Montchalin is the French Junior European Affairs Minister. She said on Friday that she could not rule out Brexit talks ending without a deal. Moreover, she added that it remains in the interests of Britain to reach an agreement. Currently, 0.8921 euros = $1).

The last small weekly rise is the dollar’s best since May. The Euro is remaining stable ahead of the European Union Summit.

There are geopolitical tensions and mounting fears that the second wave of COVID-19 cases will impede a swift economic recovery. Thus, on Friday, the dollar was on track for its best weekly gains.

The Euro and Others

In European morning trade, the reserve currency of the world was flat. This week it has gained around 0.3%. That is its best performance since mid-May.

There are also high tensions between China and India. Even though the two Asian nuclear powers have agreed to make efforts to de-escalate their confrontation in the western Himalayas, the pressures are still there.

Meanwhile, the United States President Donald Trump threatened again to cut ties with China. That was the day after the first high-level talks between the countries in a month.

Scott Morrison is the Australian Prime Minister. He added to the worldwide tension by saying that a sophisticated state-based actor attempted to hack a wide range of Australian organizations. That was taking place for months. Thus, Morrison stepped up efforts to rebuff it recently.

From the March lows, the Australian dollar has soared by almost 25%. It was last up by 0.3% at $0.6875.

Traders switched their attention to the European Union summit. The bloc leaders will try to navigate regional divisions with a 750 billion euro  ($840 billion) fund for recovery from coronavirus.