The early gains made on Monday by the US dollar failed to sustain in the later-day trading as doubts about the US economy recovery played spoilsport.<\/p>\n
The dollar finished with a gain of 0.3 Percent against Japanese Yen yesterday, after gaining around one Percent in the morning trade helped by month-end buying; the currency had recently traded in its multi-month low of 104.195, triggering a bounce-back from oversold levels.<\/p>\n
Meanwhile, EURO\/USD eased by 0.3 Percent to $1.1744, drifting down from its Friday high of $1.1908. Yesterday, the pair garnered attention due to the reported record level of long positions. Also, technical indicators were in the overbought zone for the pair.<\/p>\n
The bearishness in the US dollar might continue as many worries are there for the currency.<\/p>\n
The US bond yields are at the lowest levels since March, with the 10-year yield hovering near 0.5 Percent. We also see the decline in real-interest-rates while running a significant current-account deficit; not a usual occurrence.<\/p>\n
The currency traders are not very peaceful about the US economic revival prospects, thanks to the continuous waves of Covid-19 cases. Also, the dilly-dallying among the policymakers on the expanded unemployment benefit, totalling about 75 billion US dollars, is a weight on the market sentiments.<\/p>\n
The increasing trade tension with Beijing, with the latest rift over the likely ban of TikTok, is another source of worry.<\/p>\n
Fitch Ratings has revised United States’ triple-A rating to negative from stable, worried over the widening fiscal-deficit while financing the stimulus. But investors have set aside that downgrade, at least for now, looking at the market response.<\/p>\n
Meanwhile, European Union rating outlook was raised to Positive from Stable, by the Standard and Poor’s. The union had last month agreed to a 750 billion euro economic recovery fund apart from agreeing to more regional cooperation.<\/p>\n","protected":false},"excerpt":{"rendered":"
The early gains made on Monday by the US dollar failed to sustain in the later-day trading as doubts about the US economy recovery played spoilsport. The dollar finished with a gain of 0.3 Percent against Japanese Yen yesterday, after gaining around one Percent in the morning trade helped by month-end buying; the currency had […]<\/p>\n","protected":false},"author":163946612,"featured_media":5531,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[],"class_list":["post-102741","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-usd"],"acf":[],"yoast_head":"\n