The U.S dollar ended the week higher against other major currencies after optimism in the U.S economy and unpleasant data released in other countries.
On Friday, investors are optimistic about the U.S economy after the increase in the number of people returning to work and the gradually reopening of the economy. Moreover, the U.S Consumer Sentiment survey increased to 78.9 in June from 72.3 in May. However, investors are waiting for U.S Retail Sales data on Tuesday, Building Permits on Wednesday and the Initial Jobless Claims on Thursday as any unexpected data will impact the greenback.
The U.S. Dollar Index, which measures the strength of the dollar against a basket of six major currencies, ended the week higher at 97.25.
Over in Europe, the Common currency fell against the U.S dollar despite data released was better than expected. The Industrial Production dropped by 17.1% between March and April better than expected of a decline by 20% but showed that the Eurozone industrial output suffered its worst deterioration on record in April due to coronavirus lockdowns.
Nonetheless, investors are waiting for Germany’s Harmonized Index of Consumer Prices, ZEW Survey, and EU Labor cost data on Tuesday and Eurozone inflation data on Wednesday. The EURUSD ended Friday’s session at 1.12545.
Likewise, in the United Kingdom, the Great British Pound was lower against the greenback after the disappointing data releases. Data showed that the UK’s economy has suffered from lockdown as the GDP contracted by 20.4% more than expected of a contraction of 18.4% and Manufacturing Production declined by 24.3%.
In addition, the UK’s export volumes falling by 17.7% month on month, while imports fell by 26.5%. Furthermore, investors are cautiously waiting for the UK ILO unemployment rate and Average Earnings data on Tuesday, inflation data on Wednesday, Bank of England Interest Rate Decision on Thursday and Retails Sales data on Friday. The GBPUSD ended Friday’s session at 1.25407.
In the Safe-havens area, the Swiss Franc traded dropped against the U.S. Dollar and ended the session at 0.95196 USDCHF ahead of Switzerland’s Monetary Policy on Thursday. Likewise, the Japanese Yen ended the session lower against the greenback at 107.349 as Japan’s Industrial Product fall by 15% more than expected. The Japanese yet remains under pressure ahead Japan’s Interest Rate Decision on Tuesday, Imports, and Exports data on Wednesday and inflation data on Friday.
Gold prices gained on Friday’s session and closed higher at 1729.73 as the surge in COVID-19 cases in the U.S has increased fear of a second wave of coronavirus.
Meanwhile, in Australia, the Aussie dollar managed to gain against the U.S. Dollar on Friday ahead of Australia House Price Index data on Tuesday, Leading Westpac Leading Index, and HIA New Home Sales data on Wednesday and Unemployment Rate on Thursday. The AUDUSD ended the week at 0.68667.
Cryptocurrencies were mixed on Friday, as Bitcoin closed the session higher at 9445.30 BTCUSD and Ethereum at 235.11 ETHUSD. However, Litecoin ended the session lower at 40.76