The Euro traded at $1.1656 on Thursday, near to two-month low against the dollar reached on Wednesday. Data about German business – the Ifo survey was due later on the day, and some analysts speculated how it would influence the common currency. The report may show an improvement in business morale in Germany.
On Wednesday, surveys showed that new restrictions pushed the euro zone’s services industry into reverse sentiment. After this news, sentiment on the Euro has suffered greatly.
In Asia, trading was much more subdued. The Chinese yuan remained steady at 6.8145 per dollar in the onshore market. On the other hand, the Australian dollar plummeted down by 0.45% to $0.7042. New Zealand also declined by 0.3% to $0.6529, after losing 1.3% in the previous session.
Some traders are observing the Aussie dollar and the Kiwi. They have come under pressure on expectations their central banks could give more monetary stimulus.
How did the U.S. dollar fare?
On Thursday, the dollar was steady against most currencies. It sat near a nine-week high against the Swiss franc at 0.9236. The greenback also held on to gains made in the previous session against the Japanese Yen, trading at 105.45.
Meanwhile, the British pound bought $1.2705 near its weakest level against the greenback since late July. The U.S. currency has soared during this week as surging Covid-19 cases in Europe and America undermined traders’ optimism about vaccine progress. Furthermore, signs of an economic slowdown rallied concerns about the fallout from the pandemic’s second wave.
Analysts think that the greenback will probably continue to rise. Another jump in virus cases in Europe boosts the currency’s safe-haven appeal. The Fed policymakers have asked the American government to provide more fiscal support.
Risk is being sold across the board, and there is a big unwinding of dollar shorts – stated Yukio Ishizuki, the foreign exchange strategist at Daiwa Securities. The strategist was referring to traders abandoning bearish dollar bets
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