The dollar marks its monthly low in the middle of the week against the euro. After having had a weak start on Monday in the Forex market.
Tense news for the dollar continues. Well, its instability increases with other currencies. Thus, the green currency continues to trade in minimum ranges against the other currencies that have managed to establish themselves again in the Forex market.
As the week progresses, and the conditions of the pandemic in the United States are evolving negatively, investors gradually move away from the US currency.
The dollar is no longer a safe haven
The deterioration of the political and social situation in the United States, with the vague control on the part of the pertinent authorities in restraining the infections by COVID-19 in the states, leaves much to talk about.
Well, nowadays, the United States is the country with the most active local cases of the disease, and they are increasing day by day.
Florida, which has become an epicenter of the new outbreak, reported 133 new deaths from COVID-19 on Tuesday and raised its death toll to more than 4,500. In the entire United States, there are 3.4 million confirmed cases to date.
This, coupled with advances in an experimental Coronavirus vaccine by an American private company, has created a risky environment for investors in the Forex market.
Well, although the vaccine has already been tested on 45 individuals, all of them generated a not very positive immune response.
Plus, there are even more reasons to be cautious. Since, the dollar promises to maintain its negative rhythm with the worsening of the tensions between the United States and China and the fear of the Coronavirus.
Thus, investors have turned their attention to currencies that have been recovering their stability in the Forex market.
The American currency is opaque in its pair with the euro
The dollar marks a monthly low in the middle of the week. The USD dollar index fell below 96 for the first time since June, falling to a one-month low of 95.77. Its last quotation fell 0.20% to 95.96.
The euro EUR observed overnight gains, extended to a four-month high of $ 1.1450 against the dollar, near the Euro / Dollar peak of $ 1,150 in early March. Last time it rose 0.18% to $ 1,142.
The reason is simple: with the dollar stepping aside, you are allowing other currencies to take the lead, leaving the US currency behind, compared to other currencies on the Forex market.
In addition to this, analysts at Action Economics explain that the euro will continue to grow in the currency market, while investors are waiting for the leaders of the European Union to reach an agreement on a Coronavirus recovery fund.
Update of the inventory of crude oil in the United States
Inputs from the US crude oil refinery averaged 14.3 million barrels per day during the week ending July 10, 2020, which was 38,000 barrels per day less than the prior week average. .
With an export of 7.5 million barrels of crude by the United States government, it seems that the behavior of the energy market has improved for the American country.
Gasoline production increased last week, averaging 9.1 million barrels per day.
Imports of crude oil from the United States last week stood at 5.6 million barrels. The data that was released today stood at -7.5 million, a positive figure for the price of black gold.
Although there is a clear improvement in the performance of the energy sector in the US, analysts of these trends consider that this will increase the risk environment of the American currency.
Well, the consumption of gasoline among the states that have already lifted their blockades in this summer season in the US only creates more uncertainty for Americans. Since free transit between the American states has multiplied contagions by COVID-19.
And due to public spending that the American government is making to mediate losses due to the Coronavirus, doubts have increased among analysts.
Dollar price to date
At the time of writing, the dollar was trading at its EUR / USD 1.1402 pair. This pair has been climbing earlier in the week, and will continue this performance, according to analysts.
In summary, the dollar marks a monthly minimum against the euro and continues in a difficult environment. And until the US government fails to control the massive outbreak of Coronavirus infections in its territory, the risk environment for the US currency will continue to affect its performance in the Forex market.