Let us check the market for the dollar and other currencies. Data showed that Chinese industrial production rebounded in April. Nevertheless, retail sales are still down 7.5% in the year. However, the market struggled to take the lead from said data. Thus, the USD/CNY pair traded up 0.1% at 7.1003 on Friday at 02:45 AM ET.
The deteriorating relationship between those two critical countries is the latest potential spanner in the works for global growth. This is because of worries concerning the second wave of infections. Moreover, there is a slow reopening of economies. Those economies are badly hit by the introduced social distancing measures to combat the virus.
The United States’ dollar situation, however, is stable.
It might be worth keeping an eye on Switzerland’s franc and its relationship with the euro. Against the franc, the single currency hit an almost five-year low of 1.0510.
Thus, it is near the level that many deem to be the non-official line that Swiss National Bank defends. For the last month, the euro has been bunging against the support level at 1.05.
Dollar and Others
EUR/CHF traded up by 0.04% at 1.0516, at 02:45 AM ET.
Michael Cahill is an economist at Goldman Sachs (NYSE: GS). He told Bloomberg that recent events in Europe have led to increasing tensions along many of the same stress points that have troubled, the region over the last 10 years. Thus, it has put renewed appreciation pressure on the traditional haven currency on the continent.
The dollar remains functional.
Meanwhile, the British Pound remained under pressure, down by 0.25% at $1.2196. This was after it touched a five-week low of $1.2161 overnight. This happened because the government of Britain reiterated its refusal to extend the Brexit transition deadline beyond December. On Friday, the third round of talks on the post-Brexit trading relationship with the European Union is winding up.
On Friday, the United States dollar has given back come of its overnight gains in early European trade.
This is the current news of the market.
- Trading Instrument