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, Forex Market: Tense calm in the dollar on Tuesday, Forex-News, Forex-News
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Forex Market: Tense calm in the dollar on Tuesday

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, Forex Market: Tense calm in the dollar on Tuesday, Forex-News, Forex-News


, Forex Market: Tense calm in the dollar on Tuesday, Forex-News, Forex-News

Tense calm for the dollar, after a session at the beginning of the week where there were no relevant macro data that caused a high impact of the US currency on the Forex market.

Monday was a weak day for the dollar, as investors began to turn their attention to currencies such as the Yuan, allowing the rise of disparate currencies to the dollar.

After a first half of the year where the dollar had become the protagonist for print companies and their high-risk investments, this role seems to be reeling in a tense calm for the dollar.

The dollar recovers a tense balance

The dollar found some pull Tuesday. Well, investors decided to trust the solid economic data of opening and increasing jobs in the service sector, at the risk of an increase in cases of coronavirus. Thus, maintaining investor confidence in an economic recovery after the COVID-19 pandemic.

Despite its fall on Monday against the Chinese Yuan, the dollar remained stable in the Forex market.

In addition, it held on to a two-week low against a basket of risky currencies, following the mood of Forex investors, and keeping taut for the dollar.

However, waiting for a second wave of coronavirus infections in the United States, and this promising an intensified closure of the most important American states in the country, it is believed that the currency will have a tense outlook.

Death cross for the dollar

The dollar has had multiple behaviors since the Covid-19 became world news and a relevant point of the day to day in the currency markets.

In addition, political situations in the United States have also greatly affected the behavior of the American currency in the Forex market. And this week was no exception.

The index, which measures the dollar against a basket of coins, had not had a “death cross” in many months. And this start of the week was striking for owning this event.

The cross of death is this bearish technical figure that occurs when the 50-day moving average crosses below the 200-day moving average. What has happened after a period of weak dollar.

It last happened for the dollar index in December 2019, after which it returned more than 3% on its index.

, Forex Market: Tense calm in the dollar on Tuesday, Forex-News, Forex-News
Tense calm for the dollar in the Forex Market, despite the recent death cross. Source: Reuters.com

Due to the central role of the dollar in the global financial system, it is important for corporations and investors to measure its trajectory.

Over the past few years, the currency has weathered a number of factors that analysts believed would push it lower. Including the abrupt turn of strategy by the Federal Reserve and the fear of a slowdown in growth in the United States due to cases of the coronavirus.

However, others believe that any weakness in the dollar will be short-lived.

Since the expectations of investors are always maintained with positive expectations in the Forex market with the dollar.

Irrigation currencies and their lift

The dollar has not been the protagonist in the Forex market in this second week of July.

And although there is this tense calm for the dollar, the other risk currencies have increased their pace and taken the spotlight from the market at the beginning of this week.

Risk currencies, such as the Australian dollar, took a breather from Tuesday’s recent gains.

Thus, investors have focused on the recovery of the stock market led by the Chinese Yuan. Well, it was the only country that does not seem to have a panorama of local blockades.

Well, as new coronavirus outbreaks and local blockades in some countries increase, investors point to other currencies.

The figures that kept these risk currencies at the beginning of the week were as follows:

The Australian dollar sank 0.65% on its US counterpart after the announcement, last trading at $ 0.6928.

The dollar index, meanwhile, rose 0.3% to 97,009. In addition, the dollar advanced 0.3% against the Japanese yen, to trade at JPY 107.71.

The euro sat just below a two-week high touched on Monday at 1.1275 and the pound held steady at 1.2491.

Dollar price to date

At the time of writing, the dollar is trading at 1.1291 EUR / USD, down 0.1%. After the holiday and the publication of employment figures in the US, demonstrating that investors’ expectations were verified.

, Forex Market: Tense calm in the dollar on Tuesday, Forex-News, Forex-News
Tense calm for the dollar in the Forex market, after a start to the week where it was not the leading currency. Source: Yahoo Finance

Additionally, the Miami metropolitan area will revert to blockades. As virus cases rose across the country by tens of thousands and the death toll in the US exceeded 130,000.

This worries investors, because if infection continues to rise, countries are expected to return to massive blockades to stem the wave of infections. But so far they consider that massive blockades are unlikely to occur.

How much longer will the tense calm last for the dollar?

Reliable sources

The information in this content has been extracted from reliable sources detailed below:

1- Own writing of the content author.
2- External source: Reuters.



, Forex Market: Tense calm in the dollar on Tuesday, Forex-News, Forex-News

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