Strategists are expecting more easing from the European Central Bank. On Thursday, they had a meeting. Here, strategists recommended buying euro with a target of $1.155. This is the level the single currency last traded, as it was on January 2019. The dollar fell to its weakest point ever since March 16, before recovering somewhat, and other currencies rising along with it. The United States dollar index was last down by 0.1% at 98.15 against a basket of currencies.
Analysts at ING said that the possibility of a weaker dollar had been realized now. This is because the United States’ measures imposed over Hong Kong is less severe than feared. Moreover, OPEC+ looked to extend oil supply cuts. This will boost commodity-linked currencies.
They said that they had pencilled in a more significant dollar decline for the second half of the year. Nevertheless, they will be attentive in case that trend emerges sooner than they had expected.
The United States Dollar and Others
Analysts said that the unrest in major United States cities against police brutality was concerning. Nevertheless, it is unlike to shift optimism in the short-term about the United States economy.
Thanks to Britain gradually moving out of lockdown, the sterling rose as much as 0.6% to a three-week high of $1.2425.
The offshore yuan edged lower. On Friday, it rallied on hopes of a softening of United States-China tensions.
With the United States dollar down 0.2% to 107.66 yen, the Japanese yen inched higher. Thus, the United States dollar is weaker.
The Canadian dollar climbed.
Ever since mid-March, the euro has found its strongest point. The Australian dollar jumped as much as 1.3%. Finally, the New Zealand dollar rose.
Although the US-China relationship may damper these developments, there is hope for an economic rebound.
Investors were looking for further signs that economies may be through the worst of the downturned caused by the coronavirus.
This is the leading news for today.