The dollar extends its gains on Thursday in the Forex market. This is due to the force that the coronavirus is taking again in the countries.
The pandemic is very far from disappearing. The cases of COVID-19 throughout the world have not stopped, and the need for society to recover its rhythm has only caused a second wave of infections of the virus to begin in the countries that had begun to recover.
Now, traders are targeting the dollar as Europe and the United States appear to be approaching an economic slowdown again.
The dollar maintains its gains as concerns grow in the market
The dollar may continue to rise as another rally in coronavirus cases in Europe fuels the attractiveness of the greenback in the Forex market.
Coupled with the COVID-19 situation, Federal Reserve policy makers called on the US government to provide more fiscal support, allowing investors to momentarily focus on the dollar.
Notably, concerns about the future of the euro and the eurozone economy appear to be increasing among traders. This not only because of the virus, but also because of the return to the severe restrictions of the economic blockade between the countries of the European bloc.
Thus, the European currency also faces an additional hurdle with the release of data on German business sentiment, according to Reuters reports.
Therefore, we can only hope that the euro can recover after the IFO (institute for economic research) survey yields the expected data for the European region.
Dollar price to date
At time of writing, the dollar extends its gains and is trading peer to the euro at 1.1651, just shy of a two-month high reached Wednesday. This according to SimpleFX data.
In the case of the dollar index, it scored 94.47 against a basket of six major currencies on Thursday, close to a nine-week high.
Finally, analysts assert that the dollar will continue its negative performance. Well, there is still no concise answer from the American government on the future of fiscal support. Not much less glimpses of a speedy economic recovery in the country.
Do you think that this second wave of COVID-19 infections will once again alter the Forex market? Leave your opinion in the comments.