Since mid-march dollar index fell by about 5%, and the safe-haven Japanese yen is trading weaker. Australia dollar rose to a peak not seen since January.
The dollar lost ground. Investors maintain their hopes for a global economic recovery. On Tuesday, the euro reached an 11-week high.
Despite growing concern over China-U.S. tensions and mass protests across the United States over the death of a black man in police custody, optimism persisted within markets.
Traders are hopeful that central banks will continue to buy government bonds. They also hope that central banks will purchase other financial assets to protect their economies from the pandemic.
For instance, the European Central Bank will most probably increase its 750 billion-euro PEPP, or Pandemic Emergency Purchase Programme, on Thursday, perhaps by 500 billion euros.
Since the start of this year, the Federal Reserve, the Bank of Japan, and ECB have all increased their sheets balance by 70%, 10%, and 20% respectively. This is what Kit Juckes, a strategist at Societe Generale, said.
The United States Dollar
Over the day, the euro last rose up by 0.4%, to $1.1178. This happened after it rallied to $1.1185. This is the highest indicator since March 17.
Against the Canadian dollar, the United States dollar fell to a three-month low of 1.3503. It was the last trading down by 0.4%. The currency also fell against the Australian dollar. In fact, the Australian side dollar rose to $0.6852. This is the highest indicator since January 24.
Versus the dollar, the safe-haven Japanese yen fell 0.1% to 109.71.
Charalambos Pissouros is senior market analyst at broker JFD Group. He said that commodity-linked currencies strengthened. Moreover, he added that safe-havens weakened. Thus, all the information suggests that the appetite among investors remained supported for another day.
Pissouros said that it seems that investors continued placing bets on the prospect of a global economic recovery.
This is the current news of the market.