0

U.S. Dollar Inched Forward on Friday. What About the Euro?

 The U.S. dollar index traded at 92.306 on Friday, rising after Thursday’s low of 92.236. However, it was still lower by 0.3% on the week.

 

The greenback has lost ground versus risk-on currencies due to the Covid-19 vaccine breakthroughs during the week. Traders’ hopes of reduced political uncertainty after the U.S. elections also pushed the currency down.

 

However, the greenback halted its downfall on Friday. The U.S. Treasury Secretary, Steven Mnuchin announced an end of some of the Fed’s pandemic lending. His statement derailed a risk rally, surprising traders who had bet on more central bank support.

 

According to reports, U.S. Senate Republican and Democrat leaders had agreed to resume negotiations on an additional pandemic stimulus package. However, Mnuchin’s announcement damped a positive mood caused by those reports.

 

Some investors were worried about ending programs that have played a vital role in reassuring markets in their opinion. Meanwhile, the Federal Reserve stated that it would prefer that the emergency facilities established after the coronavirus outbreaks continue to serve their role as a backstop.

 

Surging virus cases and resulted lockdowns also soured the positive sentiment. California ordered a curfew placed on all indoor social gatherings, along with non-essential activities outside the home across most of the state to fight an alarming rise in Covid-19 infection.

 

How did the Euro and other currencies fare?

 

The Euro traded at $1.1874, remaining flat on the day. Despite that, the common currency was not far from this week’s high of $1.18935, which it touched on Tuesday, gaining 0.3% during the week.

 

The Japanese yen sat at 103.80 per dollar, holding to its weekly gain of 0.8%. However, the reaction in Forex markets has been limited compared with the U.S. futures and bond markets.

Tatsuya Chiba, the manager of forex at Mitsubishi UFJ Trust Bank, noted that it seems, at the end of the day, financial markets will remain solid and detached from the concerns of the real economy.

 

Meanwhile, the Times newspaper reported that European leaders might urge the European Commission to release no-deal Brexit plans. The British pound moved on the defensive after that.

The Sterling traded at $1.3258. Against the Euro, it changed hands at 0.8955 pounds per Euro, losing its gains made over the last two days.

 

The Australian dollar was little changed at $0.7284, after losing most of its gains this week. Furthermore, the offshore Chinese yuan traded flat at 6.5716 to the greenback after rallying to a 2 1/2-year high of 6.5318 on Wednesday.

 

On Friday, the Turkish lira was firm after a 2.3% jump on Thursday. The Turkish central bank delivered a big rate hike and pledged to remain tough on inflation, causing the rally.

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!

You might also like

Leave a Reply

Sending

Subscribe to Our Newsletters

Have the best of Finance Brokerage News delivered directly to your mailbox. Subscribe now to receive the latest market news.