European currencies rallied on Monday. What about Dollar?

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European currencies rallied on Monday. What about Dollar?

The Euro rose by 0.2% to $1.1239 in Asia on Monday. According to experts, the currency may wrap up its best two months against the U.S. dollar in a year and a half. The hopes for an additional stimulus from a united EU and a fast regional recovery pushed the Euro ahead about 2.5% since May.

The sterling also jumped by 0.3% from the month-low on Friday. A new round of talks about a post-Brexit trade pact is due to begin this week. Investors are concerned about whether Britain can settle the agreement with the European Union or not.

Meanwhile, the greenback struggled on Monday, but riskier currencies rose slightly as traders’ sentiments wavered between hopes for global economic recovery and worries that a fresh wave of Covid-19 cases could undermine the reopening of businesses. The dollar plummeted down by 0.2% to 97.303 against a basket of currencies, pulling back from the one-week high hit on Friday.

Washington state and the city of San Francisco have paused reopening plans due to surging infection cases. Texas and Florida ordered some bars to close, with California following their example on Sunday. Nonetheless, in other regions, including New York State, Europe, and Asia, re-openings continue, and data illustrates a swift rebound so far.

What about the Australian and New Zealand dollars?

The Aussie and Kiwi jumped by about 0.2%, nearing the center of recent ranges. Both currencies made most of that ground in the early days of June, but have tracked sideways since then.

Overall, the Australian dollar has skyrocketed by almost 25% from a more than 17-year low hit in March. It traded higher by 0.2% at $0.6877 on Monday. The New Zealand dollar also soared by the same margin to $0.6431.

Safe-haven currencies are rising along with rallying risk-off currencies, pointing to heightened caution. However, the thirst for the U.S. dollar has eased off as the Fed has flooded markets with liquidity.

The safe-haven Japanese yen and Swiss franc are set for their best months against the greenback this year. They gained 0.6% and 1.5% respectively, both increasing a little on Monday.

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