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Euroslip; US dollar higher by 1 inch in volatility trading

File Photo: The European Central Bank (ECB) presents a new 50 euro banknote at its Banking Headquarters in Frankfurt, Germany, on July 5, 2016. REUTERS / Ralph Orlowski

July 22, 2021

Gertrude Chavez-by Dreyfuss

New York (Reuters)-The dollar rose overall on Thursday’s volatile trading and moved as risk sentiment increased and decreased, but the euro fell as investors digested the European Central Bank’s statement and the president’s comments. did.

The US currency reached its highest level on Wednesday in more than three months.

The desire for risk was mixed, with US equities rising slightly that day, but government bonds trading at high prices and yields declining.

Despite the dollar’s fall from its three-and-a-half-month peak, investors are still in demand, analysts said.

Simon Harvey, Senior Forex Market Analyst at Monex Europe in London, said:

“I don’t think this turmoil will go away in the short term, so I think the dollar will continue to skyrocket over the next few months,” he added.

Early in the session, the greenback slipped on higher-than-expected US unemployment claims data that raised concerns about the world’s largest economic recovery from a pandemic.

Meanwhile, the euro remained strong early the next day, meeting expectations as the ECB promised to keep interest rates at record lows for longer.

ECB Governor Christine Lagarde said in a media briefing that nothing would change the market’s cautious outlook for the euro area. She said a new wave of coronavirus pandemics could pose a risk to the recovery of the region, but she provided a more balanced economic outlook.

The ECB’s dovish gist, following a recently published strategic review, is expected to continue to put pressure on a single currency as many peers are considering stimuli for the pandemic era.

In late afternoon trading, the euro fell 0.2% to $ 1.1767, not far from Wednesday’s three-and-a-half-month low of $ 1.1752.

Meanwhile, the dollar index rose 0.1% to 92.852 as the impact of US unemployment claims data diminished.

Data show that the first bill for state unemployment allowance for the week ending July 17 increased by 51,000 to seasonally adjusted 419,000, the highest since mid-May. Economists surveyed by Reuters predicted 350,000 applications last week.

Karl Chamotta, chief market strategist at Cambridge Global Payments in Toronto, said the data risks pushing the Fed’s tightening plans into the future, putting additional pressure on bond yields.

Growth-focused currencies, such as the Australian dollar, gained as a global risk sale have weakened further. Australia was up 0.2% to US $ 0.7372.

Sterling rose 0.4% to $ 1.3767, recovering from the valley for five and a half months. Meanwhile, in cryptocurrencies, Bitcoin rose 0.4% to $ 32,287.

Bitcoin rose moderately after Business Insider reported that JPMorgan Chase and Company would allow all wealth management clients access to crypto funds.

The dollar fell 0.1% against the yen, another safe haven, to 110.17 yen.

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Currency bid price at 4:28 pm (2028 GMT)

Description RICLast US Close Pct Change YTD Pct High Bid Low Bid

Previous changes

session

Dollar Index 92.845092.8030 + 0.06% 3.183% + 92.9260 + 92.5040

Euro / Dollar $ 1.1769 $ 1.1789 -0.17% -3.67% + $ 1.1831 + $ 1.1758

Dollar / Yen 110.1700110.2800 -0.10% + 6.63% + 110.3550 + 110.0200

Euro / Yen 129.66130.09 -0.33% + 2.16% + 130.2900 + 129.4900

Dollar / Switzerland 0.91940.9177 + 0.19% + 3.92% + 0.9201 + 0.9156

Pound Sterling / Dollar $ 1.3764 $ 1.3713 + 0.38% + 0.75% + $ 1.3787 + $ 1.3691

Dollar / Canada 1.25671.2561 + 0.07% -1.29% + 1.2594 + 1.2530

Australia / Dollar $ 0.7381 $ 0.7360 + 0.30% -4.04% + $ 0.7397 + $ 0.7343

Euro / Switzerland 1.08191.0821 -0.02% + 0.11% + 1.0840 + 1.0814

Euro / British Pound 0.85490.8600 -0.59% -4.34% + 0.8609 + 0.8542

NZ $ 0.6973 $ 0.6972 + 0.02% -2.89% + $ 0.6985 + $ 0.6947

Dollar / dollar

Dollar / Norway 8.85058.8785 -0.33% + 3.06% + 8.8915 + 8.7790

Euro / Norway 10.418310.4700 -0.49% -0.47% + 10.5235 + 10.3500

Dollar / Sweden 8.67778.6876 -0.24% + 5.87% + 8.7004 + 8.6452

Euro / Sweden 10.214410.2386 -0.24% + 1.37% + 10.2538 + 10.2080

(Report by Gertrude Chavez-Dreyfuss, additional report by Sujata Rao and Tommy Wilkes in London, edited by Bernadette Baum, Mark Heinrich, Dan Grebler)



Euroslip; US dollar higher by 1 inch in volatility trading

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