Black Pipper

Forex Dreamers

The euro rose after the release of a strong PMI

Schedule euro to dollar at intervals of 60 minutes

The euro rose on Friday, returning to a seven-week high after European Central Bank President Christine Lagarde denied rumors that politicians would begin to consider cutting bond purchases.

The purchasing managers’ index for April was better than expected in the euro area and supported the view that the economic recovery in the region is accelerating, although this data had little impact on the already stronger euro. US data is due at 13:45 GMT.

The euro rose 0.3% to $ 1.2054, while the dollar index fell 0.3% against a basket of currencies.

The dollar has been stuck in a tight trading range near multi-week lows on Friday as markets await next moves from major central banks ahead of next week’s Federal Reserve meeting.

Also read  Lira fell by 2%, and on Monday it could collapse altogether if the United States recognizes the Armenian genocide on Saturday

“The ECB looked much more cautious than the Bank of Canada, as ECB President Christine Lagarde stressed that risks are still on a downward trend and uncertainty remains,” analysts at UniCredit said.

According to them, this likely gave investors the opportunity to take profit on the euro-dollar after the recent rally.

While rising coronavirus vaccination rates and an improved economic outlook are reasons for optimism, investors are lowering expectations of a withdrawal of monetary stimulus after Lagarde said talk of ending emergency bond purchases was premature, analysts said.

Fed Chairman Jerome Powell is expected to reiterate his message next week, which will put downward pressure on Treasury yields and limit the dollar’s gains against most currencies.

Also read  Euro is not averse to seizing the initiative from the Dollar, unless a double blow to risky assets adds a greenback

“Powell should confirm continued soft monetary policy, as did Lagarde,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“As a result, the dollar is likely to fall against the yen, but the overall trend for the dollar is still ambiguous. The dollar could still rise against commodity currencies if commodity prices start falling again. ”

The Aussie and New Zealand dollars strengthened on Friday, but traders say the risks point to a decline due to the recent decline in commodity prices.

The pound rose 0.4% to $ 1.3890.

Cryptocurrency Ethereum fell more than 10%, while larger rival Bitcoin fell 7% amid rumors that US President Joe Biden’s plan to raise capital gains taxes will limit investment in digital assets.

Also read  The Pound takes the reins

Leave a Reply

Your email address will not be published. Required fields are marked *