The Greenback advanced versus most major currencies supported by a strong US economy.

The Greenback advanced versus most major currencies supported by a strong US economy.

August 10, 2018 0 By Ali Hwary

The Greenback advanced versus most major currencies on Thursday, as investors speculate on /- global trade tensions and a strong US economy would continue to support the U.S. Dollar.

The Greenback has the upper hand over developing market currencies in a trade war scenario, and tariffs may actually narrow the U.S. trade deficit.

Dollar gains have been more distinct versus emerging market currencies, due to the fact an escalation in trade war tensions between in US-China would hit their economies harder.

Furthermore, better-than-expected initial jobless claims, and rising producer prices supported the dollar higher.

The U.S. Dollar index surged by 0.55 percent against the basket of six major currencies on Thursday, to trade at 95.47 at the close.

In Europe, the single currency tumbled on comments from the European Central Bank on Thursday; the EURUSD dropped 0.72 percent to trade at 1.15262 at the close.

The European Central Bank comment weighed on the single currency after the ECB said global growth risks are increasing, with protectionism and higher U.S tariffs weighing on global sentiment.

In the United Kingdom, the Sterling pound tumbled versus the greenback on Thursday to mark its sixth consecutive session in the red,  down more than 0.44 percent to trade at 1.2821 GBPUSD at the close,  with the Cable continuing its slump as traders and investor-backed bets on Britain leaving the European Union without an agreement “Hard Brexit” with Brussels on their future relationship.

Regarding safe-havens, The Yen slightly edged lower versus the greenback on increased trade tensions. Despite revelations that the Bank of Japan is under pressure to move away from its accommodative policy also support the Japenese Currency.

The USDJPY added 0.10 percent to trade 111.073 at the close. Meanwhile, the Dollar also edged up versus Swiss franc with the USDCHF up by 0.04 percent to trade at 0.99348 at the close.

Early Thursday, Japanese policymakers summary of opinions from the July 30-31 Bank of Japan board meeting early Thursday showed that one policymaker wanted to allow long-term yields to move in an even broader band than the range currently indicated by the central bank, a notion that spark debate in the market on how long the BOJ would keep its current ultra-accommodative monetary policy.

Furthermore, In trade, Japan, and the United States Initiated what both parties call “free, fair and reciprocal” negotiations on trade, with the discussions due to resume on Friday.

While value keeping precious metal, Gold, fell by 0.12 percent against the greenback on Thursday to trade at 1212.28 XAUUSD.

In commodity stocks, the Canadian loonie lost ground to the US dollar on Thursday, amid decline in oil prices and broad strength in the greenback, Canada’s most significant export; The USDCAD added 0.23 percent to trade at 1.3050 at the close, U.S Crude Oil traded at nearly constant levels to end the session at $69.93 per barrel.

Furthermore, both Aussie and Kiwi declined versus their U.S counterpart to close the session at 0.73717 AUDUSD and 0.6614 NZDUSD.

The kiwi slide after the Reserve Bank of New Zealand surprised markets and unexpectedly decided to leave interest rate lows through till 2020 amid disappointing economic activity, the decision caught markets off-guard.

Regarding Crypto’s, the Bitcoin and Ethereum advanced versus the Greenback to end the session at 6486.81 BTCUSD and 360.95 ETHUSD, while LTCUSD also closed lower at 61.98.

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