The Euro skyrocketed on Friday. How did Sterling fare?

The Euro surged forward to $1.1908 on Friday before settling at $1.1854, higher by 0.1% on the day. The currency traded below $1.10 in May. However, European Union leaders agreed to a 750 billion euro economic recovery fund this month. After that, the Euro skyrocketed again.

The British pound soared to $1.3143, a 4-1/2 month high. It also strengthened against the Euro at 90.33 pence.

Meanwhile, the Swiss franc also continued its rally against the greenback. The dollar tumbled down by another 0.1% at 0.9077 francs.

The U.S. currency traded at 104.195 yen, losing 3.3% this month. The Japanese yen hit a 4-1/2 month high against the dollar.

• • • Interested in trading the British pound? Read WiBestBroker’s comprehensive review on FXChoice.

How did the U.S. dollar fare?

The greenback fell on Friday. Investors were concerned about the U.S. economy’s fast recovery as the coronavirus cases continue rising. As a result, the dollar got on course for its biggest monthly drop in a decade. For a while, it seemed like it would recover. But soon, the currency continued its downfall.

On Friday, the dollar index plummeted down as low as 92.546. However, it managed to rebound, trading flat at 92.847 at last. The greenback has lowered by almost 5% in July. Most of the decline came in the previous ten days as new Covid-19 cases surged across several U.S. states. Furthermore, some recent data pointed to economic recovery losing steam.

On Thursday, U.S. President Donald Trump spoke about the possibility of delaying the November presidential election. Trump’s statement further undermined confidence in the greenback.

According to Unicredit analysts, the dollar’s weakness will persist in August. However, abrupt moves in intraday activity are more likely in August due to lighter market conditions.

Still, downward pressure may be less intense over the next month, considering global economic growth worries and concerns about further coronavirus developments, as well as the depreciation the greenback has already suffered in recent weeks.