On Friday, the evergreen buck consolidated its achievements. It’s generally anticipated to conclude the fourth consecutive week in positive territory amid soaring optimism about the prospects for the surge of the American currency in the nearer weeks.
The US dollar index, tracking the dynamics of the greenback against a group of six key counterparts, showed 92.55, which is 0.1% lower than the previous reading, further drifting away from the maximum of four and a half months of 93.42 recorded in Wednesday.
The evergreen buck is ready to conclude the fourth consecutive week in positive territory – it will be the longest series of weekly leaps since the fourth quarter of 2016. For the last month, the US currency has ascended by approximately 4%.
Analysts of Bank of America state that the main catalyst for the surge of the evergreen buck was the lack of improvement in the economic indicators of the eurozone, which made traders open a record number of short positions in the US currency, in particular, against the currencies of developing countries.
According to data on positioning in foreign exchange markets, hedge funds cut the volume of net short positions in the evergreen buck by $10 billion to approximately $18 billion for the week ended May 4.
Trades in the currency markets on Friday are generally calm, with most of the key currency pairs traded in quite narrow ranges.
The common currency managed to strengthen about 0.15% hitting $1.1934, having come down from this year’s minimum of $1,1823, hit on Wednesday.
The evergreen buck remained virtually intact against the Japanese yen, trading close to the 109.28 yen mark having soared to a three-month peak of 110.05 the previous week.
As for the Australian dollar, it got back to $0.7552 having dived on Wednesday to an 11-month minimum of $0.7413.
American multinational companies get down to reevaluating their currency hedging strategies following a leap in the evergreen buck for recent months because the impact of the stronger US currency starts influencing second-quarter corporate profits…
On Wednesday, the British pound headed south to the lowest value for 10 months versus the broadly stronger greenback because suddenly dismal British inflation data decreased chances for an August rate lift by Britain’s key financial institution…
On Wednesday, the evergreen buck managed to jump because Fed Chair Jerome Powell came up with an upbeat assessment of the American economy at his Tuesday’s semi-annual congressional testimony…
In February, Japan's exports probably ascended at the fastest pace for two years due to a softer yen as well as improving global demand, as a Reuters survey showed on Friday…
On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…
On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…
Your request is accepted.
A manager will call you shortly.
Internal error. Please try again later
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
