Ifo Survey, the United States Dollar, and Second Wave

Ifo Survey, the United States Dollar, and Second Wave

Let us track changes in the market. This week, against most currencies, the United States dollar rallies. Because of coronavirus concerns, risk assets are in retreat.

Sings of stuttering global economy hurt sentiment. During growing economic gloom, the euro looks to the Ifo survey.

Sings of an economic slowdown in the US and Europe revived worries concerning the fallout from the second wave of coronavirus infections. Thus, on Thursday, the United States dollar held onto gains against most currencies.

Worries about a return to severe lockdown restrictions already hit the euro. Now, it faces an additional hurdle later Thursday with the release of data on German business sentiment.

Another round of coronavirus cases in Europe boosted safe-haven appeal. Thus, the United States dollar will continue to rise. Meanwhile, policymakers of the Federal Reserve called on the United States government to provide more fiscal support.

The United States Dollar and Other News

Yukio Ishizuki works for Daiwa Securities. He is a foreign exchange strategist there. So, Ishizuki said that Risk is being sold around the board. Thus, there is a bid unwinding of the United States dollar shorts. Ishizuki referred to investors abandoning bearish dollar bets.

Ishizuki said that the need for even more stimulus and questions surrounding the coronavirus turns flows back to the US dollar.

On Thursday, the US dollar traded at $1.1656 per euro. It was just shy of a two-month high reached on Wednesday.

Against the Swiss franc, the greenback held near a nine-week high at 0.9236. Also, it held on to gains made in the previous session against the Japanese currency, to stand at 105.45 yen.

The pound bought $1.2705. Since late July, it was near its weakest level against the US currency.

Rising infections in Britain and Europe undermined investor optimism concerning vaccine progress. Thus, this week, the United States dollar rallied.

That is the current news of the market and the United States dollar.

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