U.S. Dollar Declines Amid Economic Optimism
06 Luglio 2020 - 11:13AM
RTTF2
The U.S. dollar fell against its major counterparts in the
European session on Monday, as European shares rallied following a
surge in Chinese stocks on hopes for a strong recovery from the
coronavirus crisis.
Shanghai stocks soared 5.71 percent, marking the biggest advance
since 2015.
A slew of positive data released today also boosted hopes for a
quick economic recovery.
Investors shrugged off worries about rising coronavirus
infections in the United States and some other countries and
instead focused on the prospects for economic recovery.
While Eurozone retail sales rebounded in May, the U.K.
construction industry surged back to growth in June, separate
reports showed.
Lockdown restrictions eased further in Europe, with England
embarking on perhaps its biggest lockdown easing yet as pubs and
hairdressers reopen for the first time since late March.
Starting July 1, the European Union opened its borders to
travelers from some third countries where the coronavirus outbreak
is considered to be under control.
The greenback dropped to 1.1328 against the euro, its lowest
level since June 23. The greenback is seen finding support around
the 1.16 region.
Data from Eurostat showed that retail sales activity rebounded
strongly in the euro area in May, as lockdown restrictions were
eased in most countries.
Sales in the 19 countries sharing the euro zone rose by 17.8
percent in May from April. The greenback fell to a 4-day low of
1.2519 against the pound, compared to Friday's closing quote of
1.2482. The currency may challenge support around the 1.29 region,
if it drops again.
The greenback depreciated to 0.9392 against the franc, its
weakest level in nearly four weeks. The greenback is poised to
challenge support around the 0.91 mark.
The greenback pulled back to 107.46 against the yen, from a
5-day high of 107.77 seen in the Asian session. Next key support
for the greenback is possibly seen around the 104.00 level.
The greenback held steady against the kiwi and the aussie, after
dropping to near 4-week lows of 0.6566 and 0.6983, respectively in
early deals. The greenback had finished Friday's deals at 0.6531
against the kiwi and 0.6943 versus the aussie.
In contrast, the greenback bounced off slightly to 1.3560
against the loonie, from near a 2-week low of 1.3519 set at 2:45 am
ET. The greenback is likely to find resistance around the 1.37
level.
The U.S. ISM non-manufacturing composite index for June will be
out in the New York session.
Grafico Cross US Dollar vs CAD (FX:USDCAD)
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