Affected by the end-of-month portfolio adjustments, and the euro continues to benefit from a recent stimulus plan announced by the European Union, the US dollar index continued to fall, hitting a new low since March 16 to 97.94; the euro against the US dollar broke the 1.11 mark, the highest in the past two months . The Nordic currency outperformed other G-10 currencies, the Swedish Krona led the gains in the G-10 currency, and the New Zealand dollar and Canadian dollar underperformed.
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The dollar index fell 0.17% to 98.31, briefly rose during Trump’s speech, and then turned down again; intraday fell 0.6%; the dollar index fell 1.48% this week. Wells Fargo strategist Erik Nelson said the fall in the dollar “indicates that the market is more concerned about tariffs than potential sanctions or other hawkish remarks.”
John Doyle, vice president of transactions and transactions at Tempus Inc, said that I think dealers were originally prepared to meet the possibility of new tariffs or sanctions, or withdraw from the first-stage trade agreement, but of course this did not happen.
The euro rose against the US dollar on the fourth day, earlier hitting the highest level since March 30, 1.1145, and rose 0.23% to 1.1102 in late trading; May rose 1.34%. The euro’s uptrend this week made it pass the 200-day moving average for the first time since the end of March. The euro rose about 1.7% this week, the largest weekly increase in nine weeks.
Analysts said that the euro’s trend is largely driven by the optimism triggered by the European Commission’s economic stimulus plan announced earlier this week, and as the global economy gradually restarts after the shutdown caused by the new crown epidemic, investors Increased willingness to take risks.
Stephen Innes, chief global market strategist at AxiCorp, said that after the US stock market rose more than 3% in May, the end-of-month adjustment of portfolio hedging also weighed on the dollar. The stock market rose more than 3% this month, suggesting that there will be a medium-sized dollar sell-off by the end of the month.
Data show that inflation continues to slow down due to the plunge in oil prices, but core inflation remains stable. This is a promising sign for European Central Bank (ECB) policymakers trying to stop deflation, which also boosted the euro.
The dollar rose 0.17% to 107.83 against the yen on the day; once intraday refreshed a low of more than a week to 107.09; after the previous five months of decline, the currency pair rose 0.61% so far in May.
The US dollar fell 0.55% against offshore RMB to 7.1332; a New York trader revealed that although Hong Kong dollar funds continued to flow out, there were some offshore RMB buying for the first time this week.
In other currency pairs, the pound rose 0.18% to 1.2343 against the dollar; the dollar rose 0.12% to 1.3780 against the Canadian dollar; the Australian dollar rose about 0.47% to 0.6668, but below the intraday high; the New Zealand dollar fell 0.08% to 0.6205 ; The US dollar fell 0.9% to SEK to 9.4311.