American Dollar Flattens at Quiet Trades
US and China stayed quiet as both countries finalized the trade talk’s Phase One agreement. As a result, the American dollar walked flat.
USD/EUR went up by 0.12% at 0.8999 when finance analysts warned investors of the ongoing Brexit debate. The proposed withdrawal was called a “risk-off tone.”
In Japan, the greenback inched behind the yen by 0.01% at 108.45, a little over its weakest 108.25 low on October 15. Investors insisted on moving into the safe-haven currency as Brexit develops, which signaled a repeated delay for the withdrawal.
The US dollar edged slightly lower than the loonie by 0.02% at 1.3089. Rising crude oil prices allowed Canada to stay on par with the American dollar.
The Greenback stepped up against its New Zealand and Swiss counterparts at 0.03% and 0.22%, respectively. USD/AUD went up by 0.22% at 1.4612 at the US Dollar’s demand for the traditional safe-haven market.
Meanwhile, sterling lost to the dollar at $1.1122, just below a two-month high at $1.1180. Speculations point to the UK Prime Minister Boris Johnson’s demands for a snap election.
Europe’s involvement in the matter brought the USD/EUR pair up by 0.12% at 0.8999.
Analysts expect the biggest monthly fall in the dollar index since January of last year.
What’s in it for the British?
British Prime Minister Boris Johnson’s demand for a general election could push sterling behind its competitors. The final decision will determine the GBP/USD exchange rate in the long run.
Sources say the Brexit uncertainty lessens risk appetite. The conflict will benefit Greenback as its safe-haven status against the British counterpart shows.
Now that the US and China are quiet about the inner dealings of Phase One, the UK was on a risk-off mood. However, households expect potential interest rate cuts to help limit the currency’s losses.
Reports say Sterling will have to rely on American price dynamics to the pair’s momentum. Otherwise, it can lead to producing trade opportunities.
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