The U.S. dollar continued to fall...from HowlsCa

24 Jul 2020, 17:22 · Views 3,153

The U.S. dollar continued to fall to its lowest point in nearly two years on Thursday, and the Euro rose for five consecutive days to its highest level since October 2018;

The US dollar fell to a nearly two-year low on Thursday, as investors expected the surge in coronavirus cases to make it difficult for the U.S. economic recovery to outperform other countries and continued to sell the USD. At the same time, the Euro rose to its highest level since early October 2018, rising against the dollar for the fifth consecutive trading day. It is still supported by the EU Recovery Fund agreement reached earlier this week. The Euro broke through the important technical barrier of $1.16.

Erik Nelson, a foreign exchange strategist at Wells Fargo Securities, said that speculators have relatively low positions in G10 currencies, so there is still room for this momentum to continue. The biggest risk that this trend stagnates, and the dollar starts to rebound is the stock market, if the stock market gains really start to falter and we see a sharp drop in the stock market, then the dollar will soon recover its strength. "

The number of initial jobless claims in the United States rose for the first time in four months last week, which also added to the pressure on the U.S. dollar, because the continuous increase in new crown cases has stalled the apparent recovery of the job market and restrained consumer demand.

According to statistics, the cumulative number of confirmed cases in the United States on Thursday exceeded 4 million, with an average of more than 2,600 new cases per hour, the highest in the world.

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