Forex – Dollar Rally Enters Day six | FxPremiere.com – The dollar was holding close to three week highs vs the euro in early trading in Europe after a report downplaying the chances of the U.S. and China ending their trade war.
At 03:15 AM ET (0815 GMT), the US Dollar Index, which tracks the greenback against a basket of other major currencies, was at 96.37, closing in on a new high for 2019. It’s now risen for the last six days, the longest continuous rally since October. Against the euro, it was at $1.1337.
The latest leg up came after a Wall Street Journal report said it was “highly unlikely” that Presidents Donald Trump meet to resolve their trade differences before new U.S. tariffs come into force on March 1st 2019.
But the dollar’s strength is also a function of other currencies’ weakness right now, especially since the Federal Reserve has effectively put further interest rate increases on hold seen on trading EUR/USD.
The British pound has been range-bound since the BOE press conference Thursday, where Governor Mr Mark Carney repeated that the next interest rate move could be up or down, depending how Brexit plays out this time.
“The Monetary Policy Committee are wage hawks and would be in hiking mode if not for Brexit,” said Nordea Markets analyst Jan van Gerich in a research note.
LONDON (Reuters) – The euro held at a two-week low on Friday as traders nursed losses in a week of bad data that indicated an economic slowdown in Europe was spreading as trade tensions between United States and China remain high.
The single currency is on course for its biggest weekly loss in more than four months after data that has also pushed down euro zone government bond yields, with benchmark German debt trading at its lowest level in more than two years.
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