Tense calm for the dollar, then a session at the start of the week where there were no data relevant macros that will cause a high impact of the american currency in the Forex market.
Monday was a day of weakness for the dollar, as investors began to fix his attention on currencies such as the Yuan, allowing the rise of foreign exchange disparate to the dollar.
After a first half of the year where the dollar had become the protagonist for the printed and investments of high risk, this paper seems to wobble in a tense calm for the dollar.
The dollar recovers a balance tense
The dollar found some jerk on Tuesday. Therefore, the investors decided to rely on the solid economic data opening and the increase of jobs in the services sector, with the risk of increased cases of the coronavirus. Maintaining investor confidence in an economic recovery after the pandemic COVID-19.
Despite his fall of the day Monday against the chinese Yuan, the dollar remained stable in the Forex market.
In addition, clung to a minimum of two weeks against a basket of currencies of risk, following the mood of the investors in Forex, and keeping in tense calm to the dollar.
However, with the expectation of a second wave of infection of the coronavirus in the united States, and this promising a close intensified the american states more relevant in the country, it is believed that the currency will have a scene tense.
Cross of death for the dollar
The dollar has had multiple behaviors from which the Covid-19 began to be global news and relevant point of the day-to-day in the currency markets.
In addition, political situations in the united States have also greatly affected the behavior of the american currency in the Forex market. And this week was no exception.
The index, which measures the dollar against a basket of currencies, had not had a “cross of death” in as many months. And this beginning of the week was noteworthy for being the owner of this event.
The cross of death is this figure a technical downtrend that occurs when the 50-day moving average crosses below the 200-day moving average. What has been produced after a period of dollar weakness.
Happened last time to the index of the dollar in December 2019, after which he threw more than 3% in its index.
Tense calm to the dollar in the Forex Market, despite the cross of the recent death. Source: Reuters.com
Because of the central role of the dollar in the global financial system, it is important for corporations and investors to measure their trajectory.
During the last few years, the currency has withstood a number of factors that the analysts believed that it would lead to the low. Including the sharp turn of strategy by the Federal Reserve and the fear of a slowdown in growth in the united States due to cases of the coronavirus.
Others, however, believe that any dollar weakness will be short-lived.
Since the expectations of the investors are always kept with positive expectations in the Forex market with the dollar.
The foreign exchange risks and their hand –
The dollar has not been the protagonist in the Forex market in this second week of July.
And although there is this tense calm for the dollar, the other currency risks has increased its pace and taken the reflector of the market at the beginning of this week.
The currency risk, as the australian dollar took a breather from recent gains Tuesday.
As well, investors have been focused on the recovery of the stock market led by the Chinese Yuan. As it has been the only country that doesn’t seem to have a picture of the locks are local.
Therefore, as new outbreaks of coronavirus and locks local in some countries increase, the investors point to other coins.
The figures that kept these foreign currency risk at the start of the week were the following:
The australian dollar sank by 0.65% in its us counterpart after the announcement, trading last at $ 0,6928.
The dollar index, meanwhile, rose 0.3% to 97.009. In addition, the dollar advanced 0.3% against the japanese yen, to trade at 107.71 YEN.
The euro sat just below a maximum of two weeks, played Monday at 1.1275, and the pound remained stable at 1.2491.
Quote of the dollar-to-date
At the time of the writing of this article, the dollar is trading at 1.1291 EUR/USD to a low of 0.1%. After the holiday, and the publication of the employment figures in the US, demonstrating that you checked the expectations of the investors.
Tense calm to the dollar in the Forex market, then a start of the week where it was not the currency of the protagonist. Source: Yahoo Finance
In addition, The metropolitan area of Miami will return to the locks. As cases of the virus have increased across the country by tens of thousands and the number of dead in the usa. UU. Exceeded 130,000.
This worries the investors, because if the infection continues to increase, it is expected that the countries return to the massive locks to restrain the wave of infection. But until now considered that it is unlikely to produce massive locks.
How much more will the tense calm for the us dollar?
The information of this content has been taken from reliable sources which are detailed below:
1 – Editorial author’s own content.
2 – external Source: Reuters.