Full dollar played their nightly losses at the beginning of London trading, as a growing number of cases diseases coronavirusom holding back positive tunedI am, and the fear of the second wave of the pandemic fading into the background improving economic data.
In this illustration, taken May 26, 2020, the banknote of the US dollar is visible. REUTERS / Dado Ruvic
According to Reuters, the total death toll from COVID-19 in the world reached half a million on Sunday. Recurrent outbreak in the southern and western states of the USA led to California again closedla some bars curtailing all the opening of his economics.
In other places, the profits of Chinese industrial companies rose for the first time in six months in May, suggesting that the country’s economic recovery is gaining momentum – but little news made to support oil prices.
In the absence of edgewow madeI am Japanese yen in the foreign exchange market, asset safelyhim sheltersand, rose against the dollar nightb. But then this movement began to fade.
Australian dollar up 0.3% against the US dollar to 0.6884, even after the country reported its largest one-day increase in new coronavirus infections in the past two months.
The New Zealand dollar also rose 0.3% against the US dollar, to 0,6683.
“Disturbing COVID may soon show up in the data about trustand consumers, ”MUFG strategists Derek Halpenny and Lee Hardman write in a note to customers, adding that recovery restrictive measures can start negatively influence on behavior consumers.
Against a basket of currencies, the dollar was at 97.303 at 07:34 GMT, falling -0.2% per day and more than 1% this month, expecting the largest monthly fall since December.
ING strategists told customers dollar could be supported by changing portfolio balanceher investors in connection with the expiration of a month, quarter and six months on Tuesday.
“Despite the fact that today in due to lack of data in on the calendar, there may be a shift in DXY to the area of 96.80 / 97.00, we would probably say that further DXY sales outside these levels seem unlikely, ”they write.
The euro rose 0.3% to 1.125 against the US dollar ahead of data on confidence in the euro area, which will be released at 09:00 GMT, and data on inflation in Germany at 12:00 GMT.
French President Emmanuel Macron and German Chancellor Angela Merkel will meet on Monday to discuss a planned recovery fund from coronavirus of the European Union.
Spanish Foreign Minister Arancha González Laya said the EU should also accept a list of countries safe for COVID-19 for travel purposes, which will be ready no later than Tuesday.
“We continue to expect a sustained recovery in the global economy, which should support our view of a stronger euro in the coming months,” wrote Goldman Sachs FX strategists in a note to customers.
“But at least at this stage we would not recommend long positions in EUR / USD for investors who choose negative regarding risk shorts by dollarfor which, in our opinion, the yen remains the best option, ”they added.
The euro pushed back from the monthly low of Friday at 1.0628 against the Swiss franc, up 0.2% to 1.0659.
Traders monitored further US reaction to the National Security Act, which will be imposed on Hong Kong.
Elizabeth Howcroft © 2020 Thomson Reuters
On this topic:
The dollar is falling on Monday
Forex will remain in the range until Thursday – UniCredit
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