The dollar reverted its trend of already two weeks losing versus several main traded currencies, after speculations that this week’s reports will post rather pessimistic figures, raising attractiveness for the safety of the greenback.
After yesterday’s consumer confidence report that interrupted a sharp rally among high-yielding currencies and in equities markets, the dollar is gaining for the second day in a row, as speculations suggest that today, another report, this time featuring U.S. durable goods, is likely to indicate a decrease in orders for the month of June, which is already adding pessimism in trading markets and curbing demand for high-yield currencies. Several currencies that were imposing historical rallies versus the greenback, like the Canadian and the Australian dollar, the South Korean won and the Brazilian real, had their progresses halted by reports’ tone this week, which are unexpectedly disappointing if compared to this month’s corporate earnings and reports posted.
The strong U.S. dollar volatility this month can be explained by a high level of uncertainty regarding the global economic directions that will follow for this year’s second half. Specialists affirm that virtually any reason that is moving stock markets down will reflect positively for the dollar outlook, as the current market scenario is based in highly speculative tendencies.
EUR/USD fell to 1.4145 as of 11:06 am GMT from 1.4285 in the intraday comparison. GBP/USD traded at 1.6387 from 1.6532.
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