The EUR to USD exchange rate rallied in yesterday’s trading and the greenback receive mixed results against other currencies. Meanwhile, after being spotted in the gaining side of the trading spectrum, the US dollar index fell in the latter half of the trading.
News from the Eurozone and Germany supported the euro in yesterday’s rally. The EU to USD exchange rate went up by 0.16% or 0.0018 points in sessions.
The pair have also reached levels between $1.1022 and $1.1060 in Wednesday’s trading. The biggest factor for the gains of the EUR to the USD exchange rate is still the Brexit divorce coming this October 31.
But due to the skepticism about Brexit, the single currency’s gains against the greenback were limited. However, the euro, compared to the British pound, moves less wildly against Brexit news.
Still, the EUR to the USD exchange rate is expected to react to the developments of the Brexit negotiations until the end of the week. Both the UK and EU want to seal a deal during the EU Summit on Thursday and Friday.
The US dollar index dropped by 0.17% or 0.17 points in the latter half of Wednesday’s trading. Meanwhile, the US dollar index futures for December 19 fell by 0.10% or 0.096 points yesterday.
The USD exchange rate will likely remain in focus in the following sessions as the trade war continues to affect the greenback and yuan.
A report said that the US dollar will continue to top the global reserve currency for 25 more years.
Meanwhile, the renminbi and the common currency is expected to further up their shares of total central bank reserves. The euro and renminbi are expected to increase their global reserve shares by 20% and 2% according to the IMF.
The data was released yesterday, and it came from a survey amongst currency experts and officials from central banks.