The US dollar is struggling for direction on Tuesday as the stock market rallies. Investors are weighing multiple events unfolding, including the Federal Reserve Chair’s semi-annual congressional testimony, strong May retail sales figures, and a spike in equities. It has been a roller coaster ride for the greenback in recent weeks as volatility and uncertainty have returned to global financial markets.
The US dollar is strengthening against its G10 currency rivals on Thursday as investors pour into the safe-haven asset amid a huge plunge in financial markets. With fears over a second wave of the coronavirus and a gloomy Federal Reserve, the bears were out in full force, helping the greenback retrace some of its 2020 gains. Jobs were not nearly as in focus as in previous weeks.
The US dollar is weakening midweek after the Federal Reserve left interest rates unchanged, noting that it does not see any rate hikes for two years. The greenback further took a hit on the US central bank, confirming that it will maintain its quantitative easing purchases for the foreseeable future. The announcement lifted US financial markets and turned the leading stock indexes green.
The US dollar is looking to find direction on Monday after a week of strong economic data. It will be a relatively quiet few days on the data front as all eyes will be on geopolitical developments and the June Federal Reserve policy meeting. The greenback’s movement will essentially depend on if the economic recovery is continuing or if the coronavirus pandemic still has a stranglehold on the US and the rest of the world.
The US dollar was the weakest major currency on the Forex market on Tuesday, falling against all other most-traded rivals. The positive market sentiment limited demand for the greenback in its role as a safe haven, pushing it back even against other safe currencies, like the Japanese yen. Rather positive domestic macroeconomic data was unable to support the US currency.
The euro today rallied higher against the US dollar driven by positive investor sentiment even as the greenback registered losses across the board. The EUR/USD currency pair rallied higher ignoring the weak eurozone inflation data released earlier today as investors bid up riskier assets.
The US dollar is strengthening on Thursday after the US government reported its lowest number of Americans filing for unemployment benefits since the COVID-19 crisis started two months ago. The news elevated the greenback, which also surged on weakening equities that have prompted global investors to pour into the traditional safe-haven asset this week.
The euro today fell against the US dollar driven by the risk-off market sentiment dominated by fears of a looming global recession in the aftermath of the COVID-19 pandemic. The EUR/USD currency pair extended yesterday’s decline that was triggered by the Fed Chair Jerome Powell’s dismissal of negative interest rates in the US.
The US dollar has wiped out all its losses from earlier in the midweek trading session after the Federal Reserve dismissed it would be introducing negative interest rates. Fed Chair Jerome Powell’s grim assessment of the US economy could prompt investors to pour into the greenback as a safe-haven asset since financial markets tumbled throughout his press conference.
The US dollar is maintaining its downward trend from late last week as the greenback slumped on new economic data and a bearish Federal Reserve. Despite being one of the bright spots in chaotic global financial markets, the central bank has tried to pour cold water on the greenback, and it is finding success in suppressing its ascent in the international economy.
