Let us check the market. ING analysts said that they are looking for more gains towards $1.20 later this year for the dollar. A weakness thus may later kick in for the United States dollar. This is because the recovery fund agreement is significant enough not to prompt investors to exit their long euro positions (particularly against the United States dollar. There, the outlook for the remainder of the year looks bleak).
Philip Lowe is governor. He said in a speech that he would prefer a cheaper Aussie dollar. Nevertheless, fundamentals supported its 27% recovery from its March lows.
The Canadian dollar climbed. Meanwhile, the United States dollar was down by 0.4% to C$1.3484, a 5-1/2 week high for the loonie.
The Norwegian crown rallied. Against the crown, the euro fell by 0.5% to 10.51 crowns. This is its weakest point since June 10.
Moreover, the sterling grew by 0.4% to $1.2716. This is its highest indicator since June 11. Against the euro, The sterling rose to 90.20 pence.
Dollar and Others
The yen was little changed, at 107.22 per dollar.
The European Union deal was cheered on, although it was primarily priced in. Countries of the European Union made a deal for a massive stimulus plan. The plan is for reviving their coronavirus-hit economies. So, the euro hit its strongest since early March, on Tuesday. The European Union deal is a compromise on concerns that thrifty northern states had about handouts for their more profligate neighbors. So, the transaction is an essential signal of unity by leaders of Europe and a foundation for economic recovery.
As risk sentiment improves, analysts think that the United States dollar will struggle. The Australian dollar and sterling soared. An upturn in sentiment sent the Australian dollar to a one-year high.
The encouraging results of COVID-19 vaccine trials boosted market sentiment. Meanwhile, stock markets have rallied. Thus, a clutch of currencies notched up to recent highs against the safe-haven United States dollar.
This is the current news of the market.
