Let us check the situation in the market and the United States. The euro was the biggest beneficiary of the United States currency’s weakness. It fell back below $1.19 and stood flat at $1.1836.
Last week, short-bets against the world’s dominant reserve currency had risen for the first time since 2011. Furthermore, long bets on the euro were at a record high.
When it comes to other currencies, against the US dollar and the euro, the Norwegian crown briefly weakened. This happened after the central bank of the country said that the currency was stronger than it assumed in its June report. Moreover, it held rates steady, as widely expected.
The United States Federal Reserve decided to cut the number of seven-days swap operations with major central banks to one tender per week from three starting from September first. That is because the conditions in the market have improved. Overnight, borrowing costs have dropped below policy rates.
Marshal Gittler is head of investment. He works at BDSwiss Group. He thinks that the move will not likely have that much impact.
Furthermore, he added that it is more a demonstration of the success of the policy that is the reason for the United States dollar’s move today.
Since Federal Reserve minutes were less dovish than some forecast, the United States dollar jumped. There were calls to make profits after the euro surged. After Norway’s central bank left rates unchanged, the country’s crown weakened.
The US Federal Reserve policy meeting last month was less dovish than forecasted. Thus, this prompted bears to buy into the heavily shorted currency. Afterward, the United States dollar consolidated gains on Thursday.
On Tuesday, the US dollar rose 1% above the two-year low at and hit 92.12.
This is the current news of the market. Let’s hope that the American economy will get better soon.