The performance of the dollar has not been all that good in the last two months. Well, analysts considered that the American currency was entering a negative spiral from which it would have no exit. However, things seem to take a different turn and the dollar maintains a rising pace in the Forex market.
The attention of all investors, analysts and traders has remained attached to the development of the dollar. Well, its free fall in its figures did not provide the greatest security for operations. And it forced investors and traders to focus on other currencies.
Is this sudden rate of rise a good sign for the future of the greenback?
The gradual rise of the dollar
The dollar gained against other currencies that had occupied a certain rhythm of operations in the Forex market. After the dollar started with its poor performance.
This was achieved in generally hectic operations. As investors focused on the fiscal stimulus in the United States and the tensions between the American power and China.
After talks in Washington about the next round of fiscal stimulus ceased, US President Donald Trump signed executive orders on Saturday, partially restoring improved unemployment payments for tens of millions of unemployed Americans.
This provided a clear respite to the dollar in Monday’s session in the Forex market. Giving a clear explanation of why now the dollar maintains a rate of rise.
However, for some analysts, this rate of increase is not enough. And the stimuli fall short of all the problems that still occur in the North American region.
“We didn’t close the deal on Capitol Hill last week, but President Trump was able to sign those executive actions. So we are getting some encouragement, but not enough “Ed Moya, senior market analyst at OANDA in New York told Reuters.
Therefore, the attention of investors and traders remains fixed on the euro and the Swiss franc. In addition to various currencies that provide less uncertainty than the dollar.
The performance of safe currencies
Although the dollar clearly improved its performance against the other currencies in the session on Monday, the question of whether this upward pace can be sustained remains among analysts and investors.
Since, by midmorning, the euro fell 0.1% against the dollar to 1.1770 dollars. While the US currency gained 0.2% against the Swiss franc at 0.9143 francs.
The dollar index, however, traded little. It has recovered most of its losses in July, when it fell 4%. After Friday’s employment data eased some fears about the US job market, but still weakened on the week, for the seventh time in a row.
Overall, the dollar index was flat or slightly above 93.43.
Dollar price to date
At the time of writing, the dollar was trading at $ 1.1746 against the euro. Demonstrating the clear downward trend that the euro is having against the dollar.
However, this does not mean that the dollar has already marked its positive rhythm compared to other currencies.
Although the dollar has shown clear improvements in its performance in recent sessions, analysts consider that there are still many factors that do not allow the dollar to recover its previous performance to this bad streak that it maintains in the Forex market.