The dollar manages to climb back to the race after investors expect positive data from the US economic reports; it pushes the currency ahead other major currencies on the Friday market. On the other hand, the euro continues to soak in the spotlight as it stays positive on earlier trading even after a lackluster week; the currencies growth also exerted some push on European stocks giving them decent gains.
The greenback is looking to close the week on a better note as US Economic data gave it a bit of bounce along with yesterday’s claims of better than expected US jobless data. The dollar was in an immense pressure after the Federal Reserves’ meeting revealed that the central bank is looking to disentangle its balance sheet just before the year ends.
USD Against Major Currencies
EUR/USD was down by 0.3% to 1.1195, the greenback manages to cut the bleeding after a week bashing from the euro. GBP/USD was also down, shedding as much as 0.54% and experiencing a new low since the May 16 debacle, it was trading at 1.2871; data from YouPoll also provided a bit of stir with Prime Minister Theresa May’s Conservative Party’s continues to take the lead on the June 8 election but was down 5 points.
The dollar index was showing a bit of strength before ending this week; the dollar index which measured the dollar’s strength against a basket of major currencies was up by 0.09%to 97.24. The immense anticipation on the US Economic data pushes the greenback to higher grounds, especially having upbeat forecasts from the jobless percentage claims in the
Euro’s Amazing Run Pushes Local Stock
The European currency has been performing tremendously this past week, it is currently making a big impact on local and domestic companies’ stocks; according to a trader at Saxo Bank in London, Pierre Martin “We are starting to see a trend, especially in the past month, where a domestic companies, like retailers, have been outperforming, while exporters in the auto and aerospace and defense industries are lagging,” and “For investors who are targeting around 1.15 for the euro against the dollar, it would make sense to be a bit less bullish on companies like Airbus and Michelin.”
Euro is currently sitting on a six-month high against the dollar at 1.1268 just before the week start. ING Bank’s investment manager Simon Wiersma noted that “The trend has caught our eye -- if the euro strength persists, we will consider adding a bit more to small caps, which tend to be more domestic,” while Emmanuel Cau of JPMorgan noted that “From where we are now, further strength in the currency is going to start creating a problem for some companies’ profits, and benefit domestics,” and “We are starting to see some rotation already. A stronger euro is ultimately a good thing for European equities.”
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