Let us check the market. The resurgence of coronavirus in the United States discouraged some investors from taking on excessive risks. Thus, on Friday, the dollar hemmed into a narrow range. Safe-haven flows supported this.
In foreign trade, the yuan was stable before the release of data on China’s services sector. Nevertheless, investors might avoid taking big positions. This is because of worries concerning diplomatic friction between Beijing and Washington over civil liberties in Hong Kong.
Data showed on Thursday that the United States economy added more jobs than forecast in June. Nevertheless, the reaction in the currency market has been muted. This is because anther spike in coronavirus infections is threatening once again to put the breaks on economic activity.
Junichi Ishikawa is a senior foreign-exchange strategist at IG Securities. He said that new infections in the United States had been on an uptrend since June.
The market leans more toward buying the dollar. This is, most notably, against the emerging currencies. The reason for this is that the dollar is considered the safest asset around.
Dollar and Other News
On Friday, in Asia, the dollar was quoted at $1.2395 against the euro.
On Friday, the dollar held steady at 0.9469 Swiss francs after three straight days of gains.
The British pound traded hands at $1.2471 at last notice.
At 107.50 yen, the dollar was little changed against the yen.
A new wave of COVID-19 infections has prompted back-pedaling or the halting of plans to reopen economic activity in several US states after months of strong lockdowns.
Officials also take steps to curtail activity amidst the extended Independence Day holiday weekend from Friday onwards.
On Friday, trading in the currency markets might be subdued before the United States holiday. Nevertheless, analysts say that sentiment favors more gains in the dollar. This is because investors have turned cautious.
The relations between China and the United States are also in focus.
This is the current news of the market.