During the doubts over United States recovery, the euro storms toward $1.17. The United States and China tensions simmer, and the yen is firm. The New Zealand and Australian dollar inch ahead as the greenback slips.
There were worries that the coronavirus resurgence in the United States could undermine the recovery in the world’s biggest economy. Moreover, United States-China tensions are intensifying. Thus, the dollar began the week under pressure.
Against the yen, in the morning trade, it fell to a four-month low. Moreover, there was a new 22-month trough on the euro at $1.1699.
Furthermore, the Antipodean currencies also rose. The dollar was at its lowest in comparison a basket of currencies since September 2018.
Tit-for-tat consular closures marked the latest escalation in United States-China tensions. Nevertheless, the lack of support for the greenback is a shift for the dollar, which has been closely tracking global sentiment through the coronavirus crisis.
There was landmark European agreement on a fiscal rescue package just as the cracks begin to emerge in the United States labor market’s rebound after it came to a broad re-evaluation of the euro’s value.
Ray Attrill works at National Australia Bank in Sydney. He is head of FX strategy there. Attrill said that the common factor is the ongoing decline in United States yields. As the bond market prices a slow United States recovery, they have also fallen. Thus, this robbed the dollar of a dependable attraction.
Last week’s message is that the deterioration in risk sentiment alone may not be enough to provide the United States dollar with any robust and meaningful support.
He suspects that it is going to tame much more (in terms of deterioration in sentiment) to bring the reserve-currency safe-haven characteristics of the dollar back to the fore.
There has been a rise in the Australian of coronavirus cases. Nevertheless, the Australian dollar took managed to get out of trouble, climbing to $0.7120.
Key Points: AUD/JPY broke below a rising wedge, signalling possible bearish momentum, with immediate resistance at 103.00 and support at…
Key Points EUR/JPY Rises to 168.25: Strengthened by robust Eurozone economy and steady ECB policy. Eurozone GDP Grew by 0.3%…
Key Points: Nio's shares hit 44.20 HKD, up 20%, with electric vehicle deliveries up 134.6% year-on-year to 15,620. BYD leads…
Key Points: Ethereum fell sharply from $3,355 to a low of $2,813, reflecting high volatility and sensitivity to market dynamics.…
Key Points Nikkei 225 slightly fell by 0.1%, while the Hang Seng index surged by 2.4%. USD/JPY increased slightly, highlighting…
Key Points: Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz. The US Dollar Index…
This website uses cookies.