Forex Market – Since the US retail data was released yesterday, which was better than expected, the dollar has strengthened against the Euro, the British Pound and even Bitcoin.
Despite the social and health issues the United States is going through, the dollar remains strong, at least in the short term. We must not lose sight of the fact that the FED continues to print money in order to fulfill all the subsidies promised by the Donald Trump government.
The dollar index advanced 0.2% to 97.16. Still, it is close to its annual low of 94.60.
Forex Market: Sentiment of the Dollar
The underlying sentiment for the dollar remains unclear, although the Fed chairman, speaking again today on Capitol Hill, cautions that risks remain in the economic landscape and that the economy is not out of the woods, wrote Joe Manimbo, senior analyst at Market in Western Union Business Solutions.
The dollar index has rebounded from a three-month low last week, but prospects for the safe-haven currency appear weak as US economic data has started to recover and stock indices have soared.
The overall dollar outlook remains negative as investors are cutting some of the risk hedging bets, some of which were buying dollars, said Ilan Solot, currency markets strategist at Brown Brothers Harriman.
Powell said Tuesday that there will be no full US economic recovery. until Americans are sure that the coronavirus pandemic has been controlled. That is far from true, with new infections hitting records Tuesday in six U.S. states, including Texas and Florida.
At the time of publication the EURUSD is trading at 1.1234, according to the SimpleFX broker. In the graph below it can be clearly seen how since mid-March the greenback has been severely punished.
Data to take into account
On Thursday and Friday it will be loaded with high-impact macro data, which can powerfully move markets. The most prominent are (hours are GMT -3):
- 08:00 – UK unemployment rate. It is forecast unchanged at 0.1%.
- 14:00 – The president of the FED speaks.
The information in this content has been extracted from reliable sources detailed below:
1- Own writing of the author of the content.
2- External source: Reuters Agency.
3- Source of the Euro / Dollar chart: SimpleFX