US Dollar Rejuvenates Against the Euro On Tuesday Trade
The United States dollar rejuvenated against the Euro during the trading activities on the Tuesday market as investors are still hoping on the US interest rate increase this year. Bearing in mind the different financial policies that are operational within the Eurozone and the United States. Although the comments of the US Feds last Wednesday weighted on the dollar.
The expectations that the Feds will still increase the US rates this year are in order since their statements indicated that an interest rate hike was certain but at a slower pace than envisaged. This striving expectation initiated the recovery of the US dollar against the Euro on tuesday following losses that has lasted for two consecutive sessions, as the European Central Bank is still progressively acquiring bonds within its quantitative easing program.
During Tuesday early trade, the Euro increased to more than $1.10 which is a fresh occurrence since last week wednesday when the United States Federal Reserve published its current policy report.
Toronto based Oanda’s Chief Currency Strategist, Dean Popplewell stated that “the hangover from the Fed meeting certainly seems to be ongoing”. He also said that the climate of the currency market is not certain as all eyes are on upcoming reports from the United States
Other Currency Aanalyst think the US dollar will still be supported even in its low dive when compared with other currencies. New York based Chapdelaine Foreign Exchange Managing Director, Douglas Borthwick supports this idea, stating concerning the strength of the US dollar – “Obviously a cold towel has been put on the (long dollar) trade, but the trend is still there”.
The US dollar suddenly covered up its losing gap against the Euro following the increased consumer pricing data for the month of February that was published on Tuesday. Afterwards it retraced its reductions before recuperating.
However, the Swiss franc, increased its highest against the US dollar and also against the Euro. Dean Popplewell analysed this as a result of the sale of the British Pound against the Swiss Franc following the poor British inflation report aiding the increase of the Swiss Franc against the US dollar and the Euro.
The dollar reduced to an almost four weeks low trading against the Swiss Franc at 0.95360 franc, and the common currency (Euro) reduced to a six week low trading against the Swiss Franc at 1.0422 franc.
The euro reduced 0.17 percent against the US dollar at $1.09260. The US dollar reduced 0.04 percent against the Japanese yen at 119.680yen.
The US dollar index, that calculates the dollar’s strenght against a group of six main currencies, increased 0.10 percent to 97.136.