Euro and Sterling were mostly steady on Friday. Why’s that?

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Euro and Sterling

The euro changed insignificantly at 1.1849 per dollar on Friday. Traders are waiting for the eurozone PMI data next week and avoiding sharp moves until then. Some analysts think that a strong PMI could boost the common currency to the 1.19 level again versus the dollar.

 

The Sterling traded at $1.2959 after losing approximately one cent on Thursday. The currency declined after the Bank of England announced that it was looking more closely at how it might implement negative interest rates.

 

Meanwhile, FX markets traded tight ranges in Asia. The Australian dollar sat at $0.7310, while the offshore Chinese yuan traded at 6.7521 per dollar after hitting a high of 6.7332.

 

On the other hand, the New Zealand currency rallied to a two-week high of $0.6785. The kiwi skyrocketed after Finance Minister Grant Robertson made a positive statement about the economy’s recovery prospects.

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How did the U.S. dollar fare after Thursday’s rally?

 

On Friday, the dollar traded in tight ranges. It was poised for a weekly loss against several major currencies after negative data turned the economic outlook grave. The greenback traded at 92.923 against a basket of currencies, on track for a 0.3% weekly decline. Meanwhile, the Swiss franc changed hands at 0.9086 versus the dollar.

 

The U.S. currency changed slightly against the Japanese yen at 104.81, after rallying to a seven-week high at 104.52 on Thursday. The yen stood near the 1-1/2 month high of 123.29 against the euro, trading at 124.18. 

 

The dollar/yen plummeted down overnight almost too much, although it’s been falling since Monday – stated Masafumi Yamamoto, the chief currency strategist at Mizuho Securities. He added that losses in U.S. stock futures were also contributing to a weaker greenback.

 

The dollar surged forward on the previous day after the Fed upgraded its 2020 economic forecast last week to trade in negative territory. However, the currency lost those gains on Friday. 

 

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