The US dollar on Friday traded near a 9.5-month high against most other currencies amid rising demand for sanctuary assets due to fears of the rapid spread of the Delta strain of coronavirus, which could slow the recovery of the global economy. The dollar was also supported by investor expectations that the Federal Reserve could still begin to roll back stimulus programs this year, even with the surge in COVID-19 infections in the United States States this month. The dollar index, which displays the value of the US currency against six other rival currencies, climbed to 93.59 (highs in early November). According to the results of the trading week, the index grew by 1.08%, for a maximum of two months. The Australian dollar fell to a new low in 9.5 months, to $0.7126, and then traded almost unchanged at $0.7145. It fell 3.14% this week, its worst since last September, as lockdown due to COVID-19 in Sydney was extended for another month. The New Zealand dollar also fell to a new nine-month low at $0.6808 and then climbed 0.2% daily to $0.68385. It fell by 2.85% at the end of the week, which is also the worst indicator since September. The New Zealand government on Friday extended the lockdown in the country, which is why the country’s central bank was unable to raise interest rates this week. The Canadian dollar fell to a new six-month low amid falling oil prices due to concerns about about the recovery of the world economy. The yen, another asylum currency, has not changed significantly and has traded near the Y109,75 level but remains at the center of its trading range over the past six weeks. The euro rose 0.09% but was still trading near the 9.5-month low reached yesterday. This week, the single currency fell 0.91%, the highest since mid-June. Minutes of the Fed’s July meeting, released Wednesday, showed that officials largely expect cuts monthly bond purchases later this year, although differences remain over the timing and rate of contraction, and whether inflation, unemployment or the coronavirus pandemic pose a greater risk of economic recovery. Daily COVID-19 infection in the United States rose from less than 10,000 in early July to more than 150,000 in August. Lower Fed debt purchases are considered positive for the dollar as it is expected to boost government bond yields US, which will make it more attractive for investors to own dollar assets. Now the focus of market participants is the Fed’s annual symposium in Jackson Hole, Wyoming, which will be held from August 26 to 28. The pound touched a new monthly low, after which it traded unchanged at $1.36335. It fell 1.71% this week, the biggest drop in two months. Yesterday EUR/USD traded downwards and closed the day in the red zone near the price of $1.1675. Today the couple traded in the narrow range of $1.1675-85, remaining near the lows of November 2020. On the hourly chart, EUR/USD is still trading below the moving average line AI (200) N1 ($1.1730). On the four-hour schedule, the situation is similar. Based on the above, it is probably worth sticking to the southern direction in trade and while the pair remains below MA 200 H1, it is necessary to look for entry points for the sale to form a correction. Yesterday, GBP/USD traded downwards and closed the day in the red zone near the price of $1.3635. Today, the couple also fell a little, dropping to $1.3615. On the hourly chart, GBP/USD is still trading below the moving average line AI (200) N1 ($1.3800). On the four-hour schedule, the situation is similar. Based on the above, it is probably worth sticking to the southern direction in trade and while the pair remains below MA 200 H1, it is necessary to look for entry points for the sale to form a correction. Yesterday USD/JPY traded downwards and closed the day in the red zone near the price. Y109.75 Today, the pair traded in a narrow range of Y109.65-85, remaining near yesterday’s closing prices. On the hourly chart, USD/JPY is still trading below the moving average line AI (200) N1 (Y110.00). On the four-hour schedule, the situation is similar. Based on the above, it is probably worth sticking to the southern direction in trade and while the pair remains below MA 200 H1, you need to look for entry points for the sale at the end of the correction. On Friday, the amount of statistics will be minimal. At 06:00 GMT, Britain announced a change in retail and net government borrowing sector for July. Also at 06:00 GMT, Switzerland will report a change in the foreign trade balance for July. In addition, at 06:00 GMT, Germany will issue a producer price index for July. At 12:30 GMT, Canada will announce a change in retail sales for June. At 17:00 GMT, Baker Hughes report on the number of active oil drilling rigs will be released in the United States. Information and analytical department TeleTrade Share in social networks
25 Aug