SINGAPORE (Reuters) – The dollar fell from a three weeks on Friday, but looked set for a modest weekly gain, rising Sino-U.s. tensions, and worries about a second wave of corona virus infections have shaken investors.
FILE PHOTO: U. s. dollar notes, in this November 7, 2016, and the image of the illustration. REUTERS/Dado Ruvic/Illustration
Hesitant hopes of a rapid global recovery of the pandemic
the trade-sensitive Australian dollar on the verge of snapping five weeks of gains, with a decline of 1%, its first weekly loss since the beginning of April.
The Aussie was steady in morning trade, at $0.6464, towards the middle of the range, he kept all the days.
The shot, the kiwi found more than 60 cents to $0.6008 from Thursday for a minimum of three weeks of $0.5958.
But most of the major currencies remained stable, most major economies began to ease, the virus-containment measures.
The yen remained stable at 107.40 per dollar. A state of emergency in many regions of Japan were lifted on Thursday.
Against a basket of currencies, the dollar was up about 0.5% this week.
Already dark in the short-term U. s. economic prospects have darkened further in the latest survey by Reuters, economists, with a forecast of 35% at an annualized rate in the second quarter of contraction. While a recovery is still expected in the second half, and the economy will not come close to regaining ground this year.[ECILT/US]
“The market is kind of in a wait-and-see mode at the moment, waiting to see, in particular, if U. s.-china trade tensions really do escalate,” said Rodrigo Catril, a chief foreign exchange analyst at National Australia Bank.
“He does a lot of voices of discontent, but the reality is that if it goes in the effectiveness of any punishment, he knows that he will have consequences on the market, and given the fragile state of the U. s. economy, and it is a delicate balancing act, as amended.”
In an interview with Fox Business Network, broadcast on Thursday, U. S. President, when He said that he was disappointed by China’s failure to contain the corona virus, and suggested that he could cut the ties.
“There are a lot of things we could do. We could do things. One could cut off the entire relationship,” he said.
China insists on the fact that it was transparent, but in the midst of increasingly bitter exchanges, the two parties have called into question the future of the partial trade agreement they signed in January.
The Chinese yuan is a barometer of the relationship between the world’s two biggest economies, has slipped to a week low for the night, but recovered some losses and has been consistently ahead of April industrial and retail sales data due at 0200 GMT.
Investors have been happy to signs of a rebound in China’s manufacturing sector, but we continue to closely monitor the detail of the figures to the signs of a return of the consumption of households as the world turns to China to find clues as to what is a COVID-19 recovery looks like.
Reuters survey, economists showed expectations of a gain of 1.5% in industrial production and a 7% decrease in retail sales, reducing shrinkage from the month of August to 15.8% of lower sales.
“The Data releases which could influence the trading day…and may add to any positive momentum and if they land close to forecast,” said Michael McCarthy, chief market strategist at CMC Markets.
The difference of the pound sterling remained under pressure at $1.2221, after touching a five-week low of $1.2161 night after the British government reiterated its refusal to extend the “brexit” transition period beyond Dec.
The euro also hit a near five-year low against the Swiss franc, or 1.502 franc as the crisis puts pressure on the single currency. It bothered the hero $1.0840.
Reporting by Tom Westbrook; Editing by Kim Coghill