US Dollar Moves Lower Amid Improved Market Mood
- Broad US dollar weakness pushes other major currencies higher
- Brightening economic prospects pressure the safe-haven dollar
US Dollar Moves Lower
The US dollar, which traditionally acts as a safe haven during times of heightened uncertainty, has moved lower across the currency board. Over the past couple of days, the greenback has retreated from its highs against a basket of currencies, including the euro, the Swiss franc, the Canadian dollar, and the British pound.
An upbeat sentiment has spread over the currency market. Investors are now largely confident that the Delta strain of the coronavirus will most likely not derail the ongoing global economic expansion.
The single European currency on Wednesday gained more than 0.40% against the weaker dollar. The EUR/USD climbed from a session low of 1.1750 to a daily close of 1.1793. The pair snapped a four-day losing streak.
The EUR/USD, however, remains pressured in the medium term as the exchange rate has been in a downtrend for the past couple of months. Starting near the end of May, the euro accelerated its downward momentum against the dollar and has depreciated by roughly 4% to the current market price of around 1.1795.
Today, the European Central Bank is expected to present its forward guidance and latest decision on its monetary policy. The event could bring increased volatility in the bloc’s currency.
Major Currencies Climb
The USD/CHF on Wednesday erased all gains accumulated a day earlier. The pair dropped as much as 55 pips, or 0.60%, to a closing level of 0.9178. The Swiss franc has been trading in a range against the dollar, hovering between 0.9250 and 0.9150 for the past five weeks.
The USD/CAD yesterday logged its second straight day of losses. In the span of two days, the American currency declined about 2% against the Loonie. The exchange rate is now gravitating toward the neighborhood of 1.2560, right below the 200-day moving average. The USD/CAD, in the medium term, has been in a strong upside swing, having added over 4% to its value since June 1.
The GBP/USD on Wednesday ended a sharp four-day decline that had erased nearly 2.40% of the pair’s worth. In a sharp comeback rally, the sterling advanced nearly 1% to a closing level of $1.3720.
Meanwhile, gold is trading slightly lower as the price of the precious metal has been moving to the downside over the last three days. Gold’s price is now gravitating toward $1,796 per troy ounce.
Why Trade with Clover4x?
At Clover4x, both experienced and new traders will enjoy a new and fresh take on Forex. Our team is focused on bringing you the safest platform on this side of the rainbow, ensuring your pot of gold is secure at all times.
We also have convenient and faster tools to fund your account, while providing many innovative opportunities for success. With some of the quickest deposit and withdrawal times around the market, you will be ready to enjoy FX in no time.
Making Forex accessible and safer is our goal on Clover4x. We aim to provide an open and clear platform that allows traders of any budget or walk of life to thrive in the Forex market. With our platform, you can start filling your golden pot today!