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Forex Market: The Dollar Gets Strong

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The dollar and the yen are the winning currencies in today’s Forex market session. The greenback pressures the euro to 1.1220. On the other hand, the Japanese currency is approaching the key support of 106.55.

On the other hand, the dollar pierces the key support of the British Pound at 1.25, trading at the time of writing at 1.2427. This comes after the UK keeps its money price unchanged at 0.1%.

Regarding safe haven assets, Gold lost 0.14% against the dollar up to US $ 1,724, while Bitcoin traded at 9,393 USD, down 0.53%.

Forex Market Analysis: Dollar, Yen and Norwegian Krone Winners

The US dollar and Japanese yen held their positions today, amid concerns about a surge in new coronavirus cases that supported demand for safe-haven coins. In this scenario the Norwegian crown is the star.

The krona moved the most among major currencies, rising after Norway’s central bank said the country’s economic outlook had improved more than expected in recent weeks, and that its interest rate would remain unchanged. for the moment, Reuters reports.

The crown “appears to be ticking almost every box right now,” said Adrian Owens, currency and fixed income portfolio manager at hedge fund GAM. In addition, he noted that “economic numbers are coming out better in Norway and the central bank is becoming more aggressive.”

Norway is one of the few countries in the world where inflation is expected to remain around the target, which supports the currency, Owens said.

The Norwegian krone was up 0.6% against the dollar at NOK 9.4560 and 0.5% against the euro at 10.6430.

Graph of the last month of the Norwegian Krone

The Coronavirus does not give truce

“The currency markets are moderately risky overnight, with a light news flow. Beyond the continuing concerns of a second wave of COVID-19, the underperformance of AUD and NZD is compounded by weak internal data, ”said Adam Cole, chief currency strategist at RBC Capital Markets.

More than 8.36 million people are reported to be infected with the new coronavirus globally, and 447,985 have died, according to a Reuters count.

An increase in new coronavirus infections in several US states. USA and the imposition of travel restrictions in Beijing to stop a new outbreak there, have served as a reminder of the risks of reopening economic activity before a vaccine is developed.

The Australian dollar fell after data showed the economy cut twice as many jobs as expected in May, highlighting the damage caused by closing restrictions.

To consider

  • The dollar maintains a certain strength in the short term against hard currencies, although its index is weak at 97.30 points. As long as it is trading below 100 points, the weakness of the dollar remains latent.
  • Tomorrow at 14:00 (GMT -3) the president of the FED will speak. Without a doubt it will be of great relevance to close the week of the Forex market.

Reliable sources

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 NOK graph: Yahoo Finance



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