The dollar’s performance has not been entirely good in the last two months. Analysts felt that the U.S. currency was entering a negative spiral from which there would be no way out. However, things seem to be moving in a different direction and the USD is maintaining its upward momentum in the Forex market.
The attention of all investors, analysts, and traders has remained focused on the Dollar’s performance. Its freefall did not provide much security for trading. And it forced investors and traders to focus on other currencies.
Is this sudden upward trend a good sign for the future of the U.S. currency?
The gradual rise of the dollar
The dollar gained against other currencies that had been trading at a certain pace in the forex market. After the dollar began its poor performance.
This was achieved in generally choppy trading. As investors focused on the fiscal stimulus in the U.S. and the tensions between the U.S. powerhouse and China.
After talks in Washington on the next round of fiscal stimulus ceased, U.S. 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 for the dollar in Monday’s trading session. Giving a clear explanation as to why the dollar is now maintaining its upward momentum.
However, for some analysts, this rate of increase is not enough. And the stimulus falls short of all the problems that still plague 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’re getting some stimulus, but not enough,“ Ed Moya, OANDA’s senior market analyst in New York told Reuters.
As a result, investors‘ and traders‘ attention remains focused on the euro and the Swiss franc. In addition to several currencies that provide less uncertainty than the dollar.
Dollar Rises on Good Employment Data
The performance of safe currencies
Although the USD clearly improved against other currencies in Monday’s session, the question of whether this upward trend can be sustained remains among analysts and investors.
As of mid-morning, the EUR fell 0.1% against the USD to $1.1770. Meanwhile, the U.S. currency gained 0.2% against the Swiss franc to 0.9143 francs.
The dollar index, however, traded with little change. It recovered most of its losses in July, when it fell by 4%. After Friday’s employment data eased some fears about the U.S. labor market, but still weakened on the week, for the seventh consecutive time.
The Dollar is still holding its ground in the Forex market, however, analysts believe that it is still a long way from being able to stabilize completely.
The Dollar is maintaining a steady rate of growth in the Iq Option market, however, analysts believe that it is still a long way from stabilizing. Source: Reuters
Overall, the dollar index remained flat or slightly above 93.43.