Dollar lower as investors look past the tension between China an the U.S

1 June, 2020

The U.S. Index, which measures the dollar strength against a basket of six currencies fell on Friday for the fifth consecutive session. The index ended the session at 98.41 the Greenback fell further in today’s session as investors looked past unrest in the United States to the global economic recovery from the coronavirus and hoped for an easing in Sino-U.S. tensions.

Regarding U.S Sino news, last week ended with relief as the U.S. President Donald Trump made no move to junk Phase 1 with China.

Relations between the two economic giants have eased as markets Trump's China speech without the market hearing anything that will upset China too greatly and promote an immediate reaction.

In economic news, investors will be waiting cautiously for the Nonfarm Payrolls for may on Friday which measures the change in the number of people employed during the previous month, excluding the farming sector expectations show that the figure will land at 8.25 million employees which is significantly better than the previous reading of 20.5 million.

Moreover, the unemployment rate is also due on Friday expectations to show that the figure will rise to nearly 20 percent.

  • Over in Europe, the Common currency traded higher for the fourth consecutive session on Friday to settle at 1.1106 EURUSD. 
  • The euro was higher after the European Union's executive unveiled a 750-billion-euro plan fueled optimism about the euro-zone economy last week.
  • The Great British Pound was higher versus its counterpart, the U.S. Dollar, to settle at 1.2350 GBPUSD as Britain moves out of lockdown.
  • Regarding Safe-Haven assets, the Greenback rose against the Japanese Yen, to end the session at 107.77 USDJPY. On the other hand, the Greenback was lower versus the Swiss franc to trade at 0.9611 USDCHF.
  • The Precious Metal Gold was higher versus the U.S dollar, finishing the session at 1729.6 per ounce supported by a weaker dollar.
  • Elsewhere in Canada, the Loonie dollar edged lower versus the Dollar, finishing the session at 1.3769 USDCAD.
  • In Asia, the Aussie Dollar finished the session higher at 0.6667 AUDUSD. On the other hand, The Kiwi Dollar was flat on Friday trading session, to finish at 0.6204 NZDUSD.

Cryptocurrencies ended the session mixed, with Bitcoin finishing lower to settle at 9399 BTCUSD while Ethidium Finished at 216.7 ETHUSD.

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