The US Dollar has recently hit a five month high after the recent truce between the United States and China called regarding the trade tariffs issues. This has encouraged investors to buy more short positions during the period for the said currency.
The dollar struggled during the mid-periods of last year due to investors mostly giving it a rough time, making it hard for it to progress further. However, the currency managed to pick up a bit since February in where it indicated a 7% rally. It was mainly due to the positive economic data of the country that has earned the support of the Federal Reserve.
As mentioned, the outlook of the US-China resolution has certainly gave a positive effect on the dollar’s overall performance.
The US Dollar is the currency of United States. It is one of the major currencies of the entire world.
The U.S. Treasury Secretary Steven Mnuchin and President Donald Trump's top economic adviser, Larry Kudlow, also revealed that the two will be creating a structure to further balance the trade issues in the future.
"In the absence of major economic releases, the headline on the easing of trade tensions with China has been positive for the dollar, although the dollar in general has been doing a little bit better," Strategist Sireen Harajli, told reports. "Economic data in the U.S. has been performing fairly well, in contrast to other parts where things have not been so great.”
Harajli also noted the uncertainties in the Japanese Economy. It was reported that the Asian country weakened during the first quarter of 2018. She also added Germany to that in where it is currently revising its first-quarter progression further.
In further details, the dollar index added 0.1% in its recent indications which was a 93.681 surge generally after reaching the said five-month high.
It is reported that the investors may possibly observe the inflation outlook of the Federal Reserve. This can strengthen the dollar because the higher the inflation, the faster the interest rates may get.
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