Euro Highest Since 201828 July 2020
On Monday the euro exchange rate hit the highest level versus dollar since 2018, as concerns over coronavirus pandemic spread in US made USD weak.
Growing Cases of COVID-19 in USA
The dollar reported huge losses versus euro on Monday as investor decided to buy euros rather than the most liquid currency in the world as cases of COVID-19 in US are on the rise. On Sunday Florida state moved to the second place on the list of states with highest cases of coronavirus, falling just behind California and overtaking New York, which once has the worst situation in the whole country. At the begging of pandemic New York was hit the most, but then first California and Florida overtook it in number of cases.
FED Meeting Ahead
On the exchange rate of USD big impact had also the fact that Federal Reserve’s meeting is concluding this week. There are expectations among investors and experts that FED will restate its commitment to low interest rates. The recovery of the economy is not going to unfold as smooth as in Europe, for instance, and FED is prepared to keep interest low in longer perspective, even for years. Interest rates are now near zero. The FED’s two days meeting ends on Wednesday. Investor will be looking for signs that the central bank is eager to boost its purchase of debt with longer dates, as well as checking if there is chance of yields caps to go forward. Net short positions of USD went up last week to the level highest since April 2018, as data on Friday showed.
EUR At Highest Level Since 2018
Troubles in US triggered lower exchange rate of USD and EUR took advantage of it. On Monday it rose by 0.79% to 1.1726 dollars at the end of the day, whereas earlier it touched the highest point since September 2018 – 1.1781 dollars. There are expectations that euro may increase gains to hit the level of 1.20 dollars if the European Union is able of containing new big outbreaks of the coronavirus. According to market experts, steady amount of investments will now be observed in Europe, which means there is still some room for more losses in USD exchange rate. On Monday the dollar index measuring its performance versus six major currencies dropped to 93.68, by 0.72%. Earlier in the day it reached 93.47 value, the lowest since June 2018.
Less Pressure to Sell
On Tuesday USD recovered a bit, after there was observed less pressure to sell it among investors just day ahead of results of FED’s meeting. Also, markets wait for the conclusions of talks on aid package in US and the deadline for US Congress to extend benefits for unemployment is approaching. However, this is still unpredictable, just as the exact stance of FED, that is why some nervous moves on US positions are made by investors.
USD Rebounding A Bit
The USD exchange rate has been in decline since May, with the rapid spread of coronavirus triggering its losses, but on Tuesday it managed to catch a bit of breath. The decline versus euro was softer – 0.2% to 1.1725 dollars. The index dollar recovered from two-year low to hit 93.918 value. But sill generally it is down by 3.6% in July. It will take more than that to make it to come back to level before the pandemic and avoid recording the worst month in almost ten years.waehrungsrechner | cambio ubs franco euro | euro franken kurs | convertitore soldi | change euro chf | cadre industrie pharmaceutique | currency converter compare | convertisseur franc euro | exchange euro to chf