BENGALURU (Reuters) – A bleaching of the U. s. dollar, the attractiveness as a global funding strains ease, but a majority of the analysts surveyed said, from Reuters, it was a high risk that the U. s.-China trade is a dead point again, the safe-haven bets in the next six months.
FILE PHOTO: A U.S. Dollar banknote is seen in this figure, the tasks, the to may 26, by the year 2020. REUTERS/Dado Ruvic/Illustration
The most major and emerging-market currencies rallied against the usd. The U.S. dollar index .DXY is down about 5% from the February peak, when the panic over the corona-virus-pandemic is raging in the financial markets.
World shares to three-month highs on Wednesday, as the monetary and fiscal stimulus have given traders confidence, despite expectations for a slow economic recovery and growing concern about U.S.-China tensions, U.S. civil unrest and the winner of the feline corona virus infections.
These risks are, as a rule, it is a recipe for a dollar, but the April say 1-3 survey of over 60 analysts predict that the usd, the losing streak would continue would his numbers most of the major Central banks to purchase government bonds and other financial assets.
“There is clearly a separation between the news headlines about geopolitics and the economy and what is in the markets. The markets fear that the global economy was offset by large amounts or the liquidity and monetary stimulus from Central banks,” said Jane Foley, head of FX strategy at Rabobank.
“There are a number of bad risks…and the fact that we are in the middle, falls in a very deep recession that could harm certainly the mood of investors in the coming months. But for now, the liquidity provision or quantitative easing was like a morphine injection.”
A slight majority of 29 of the 50 analysts said in answer to a further question, and that the risks are skewed more to the downside risks for the dollar in the next six months.
In a separate question, more than 70% of the 57 analysts said the risk was “high,” and that ” the U.S.-China would renew spacers, which are bets, for or for the safe-haven currencies over the next six months.
“With the U.S. elections, she sees just a few months in advance, and the de-escalation or the U. s.-China tensions is unlikely. The challenge of domestic competition and the level of the USD overvaluation…lead us to see the risks, the obliquely downward in the next six months,” said Roberto Cobo Garcia, head of G10 FX strategy at BBVA.
(Graphic) – the Reuters poll, we have a risk of U. S.-China-off, is extended to the safe-haven FX, bets will be in the next six months: here)
To borrow at international rates-Dollar cross-currency basis swaps, which were very high in mid-January at the low level, with the latest euro-dollar three-month swap rate, suggesting it has held on to take more expensive loans, the euro.
The euro EUR=, which rose to about $1.12 for the first time in 11 weeks on Wednesday, and was on course for a seven-day winning streak against the us dollar, the longest since December 2013.
That was weakness especially by a broad-based dollar and on expectations of policy support for the euro-zone would be economies most vulnerable people, with credit buys.
The euro who disregards, a contraction in may, the economic activity is based on the PMIs and the increase in the unemployment rate, with traders more focused on the expectations of the European Central Bank (ECB) to increase purchases of their pandemic-related bond-when it meets on Thursday.
While the single currency was expected to trade around us $1.10 at one, three and six months, it was to win the forecast, almost 2%, to $1.14 in a year. This is a slight upgrade of $1.08, $1.09, $1.10 and $1.13, respectively, for these periods, and forecast a month ago.
It also hopes for a 750-billion-euro European Commission’s recovery fund, there would soon be a form, and the shell, the performance of the weakest countries in the community.
The euro was expected to “stronger” against the dollar in the immediate aftermath, when the European Union Parliament says, and the words, the corona-virus recovery fund, would not be “weaker” or “much weaker” if it succeeds, a majority of analysts, is in the answer to various questions).
Reporting by Rahul Karunakar; Polling by Sumanto Mondal and Hari Kishan; editing by Ross Finley and Cynthia Osterman