Ever since January, the Euro/Swiss franc pair has arrived at its highest point. The dollar index has fallen to a nearly three-month low.
Against the United States dollar, the Australian dollar is at its highest in five months. Year-to-date, the crown of Norway is the strongest currency.
On Wednesday, the euro topped an 11-week high, and it was on track for a seven-day winning streak. Moreover, against most currencies, the dollar fell. This happened because of the prospects of another stimulus, and hopes for economic recovery led investors to buy riskier assets.
Euro implied vitality gauges jumped to 12% overnight. This is the highest in a whole month. Thus, this suggested traders were preparing for unusually large moves in the common currency.
Against the United States dollar, the Australia dollar hit a five-month high of 0.6982. This happened because funds were seeking exposure to those economies which were forecast to make the faster recoveries from the pandemic.
Mass protests against racism around the United States weighed on the currency. Thus, against the Swedish and Norwegian crowns, and British pound,
the United States dollar also fell.
The Euro and Others
Moreover, against six major currencies, an index for the dollar fell to a nearly three-month low of 97.28.
Charalambos Pissouros is a senior market analyst at JFD Group. He said that the risk-linked Kiwi and Aussie strengthened. Nevertheless, safe havens of the franc, dollar, and the yen weakened. Thus, that combination of currencies suggests that investors will continue to increase their risk exposures for another day.
It seems that investors are still looking past China-U.S. tensions and the civil unrest in the United States.
The United States President Donald Trump threatened, by use of the military, to quell protests against police brutality and racism. However, United States stocks continue to rally. Thus, this left some currency traders confused about the direction of the market.
Usually, traders preferred to bet on the recovery of the global economy.
This is the news of the day.
- Trading Instrument