|Day's Range||0.939 - 0.941|
|52 Week Range||0.9182 - 1.0026|
There are two levels in focus on Friday. The first is last week’s close at 97.580. The second important level to watch is 97.700.
The U.S. dollar rose against the safe-haven Japanese yen and Swiss franc on Friday as stocks on Wall Street rallied from their worst one-day performance in three months, while the euro dropped against the greenback, erasing early gains. The yen fell against the dollar for the first time in five sessions, while the Swiss franc declined, as Wall Street rallied to claw back some of the sharp losses suffered in the prior session. Going into next week, investors are bracing for a number of key events, including discussions on the European Union recovery fund, Brexit negotiations, Bank of England and Swedish National Bank meetings.
Bets that pushed the Swiss franc to a five-year high as the coronavirus crisis revived euro break-up fears have gone spectacularly sour, the latest in a line of franc moves to leave traders with bloody noses.
It seems that Tuesday is a correction day. Indices are giving up Monday gains, safe havens are climbing higher and Oil is declining.
The safe-haven yen and Swiss franc on Tuesday gained for a second straight day this week as U.S. stocks stumbled a day after a blistering rally that propelled the tech-heavy Nasdaq to an all-time high. The yen rose to one-week highs against the dollar, while the Swiss franc climbed to its highest in more than two months versus the greenback. Japanese investors have also sold the dollar as they positioned for the likelihood that the Federal Reserve will take steps to flatten the Treasury yield curve.
The Euro rose to two-week highs against the Dollar. Surpassing 1.0930, the common currency is close to restoring its losses from the beginning of the month to the Dollar.
The U.S. dollar has given back some of its overnight gains in early European trade Friday, but remains in favor as risk aversion still dominates, amid rising Sino-U.S. tensions. At 2:45 AM ET (0645 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 100.365, down 0.1%, having earlier Friday reached a three-week high. U.S. President Donald Trump ratcheted up these tensions in an interview with Fox Business Network on Thursday, stating he was disappointed with China's failure to contain the coronavirus, that this had cast a pall over the trade deal between the two countries.
Sell in May and go away, if you’re not familiar with this phrase, it’s a saying frequently used by stock traders and refers to the popular belief that stock markets tend to go down in May.
The world markets started trading session on Tuesday with a dive into the red zone. However, they managed to return to growth in the wake of news about the spread of coronavirus.
The dollar traded marginally higher Tuesday, helped by gains against the more defensive currencies, the Japanese yen and the Swiss franc, on the last trading day of the month. At 3:05 AM ET (0705 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 99.597, up 0.3%. “The talk is Japanese names are short of dollars (as the fiscal year comes to an end), which is likely to keep the dollar bid well into London time,” Yukio Ishizuki, FX strategist at Daiwa Securities, told CNBC.
The U.S. dollar has continued to push higher Thursday, as investors look for a safe haven amid periods of wild financial market volatility and worries over tightening liquidity. The U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 101.930 up 0.4%, and just off its highest level since the end of 2016. Elsewhere, the Australian dollar skidded to a 17-year low, the New Zealand dollar fell to an 11-year low, while the Norwegian kroner fell over 5% overnight as oil prices crashed.
The U.S. dollar dropped on Wednesday against the Japanese yen and Swiss franc, in line with the stock market's plunge, as fears over the spreading coronavirus pushed investors into safe havens, even as sterling fluctuated between gains and losses after the Bank of England unexpectedly cut interest rates. Central banks and governments around the world are scrambling to limit the economic damage of the coronavirus outbreak, which has sent stock markets into a tailspin as investors head for the safety of government bonds. Investors were also disappointed as President Donald Trump made no major announcements on stimulus measures.
The dollar posted sharp gains on Tuesday against the safe-haven Japanese yen and Swiss franc, rebounding from the prior day's huge losses, as investors hoped global monetary policymakers will launch further stimulus plans to ease the economic impact of the coronavirus outbreak. The U.S. stock market also rebounded Treasury yields rose across the board, as the market anticipated a news conference by U.S. President Donald Trump on economic measures in response to the virus. Also, indications of further stimulus efforts by some governments helped steady the market after Monday's gyrations.
Investors are nervously looking at the bankers’ printers awaiting the fresh stream of money. That is the world that we live in after the 2008 and we just have to accept it.