Return to Currency News Friday May 29th 2020

Dollar sold off as risk sentiment improves

Headlines

  • Pound lower generally
  • Euro continues to push higher 
  • Dollar sold off as risk sentiment improves

GBP

  • The pound performed well versus the dollar after markets sold off the greenback. However, it was lower against a basket of currencies as the combination of calls for Dominic Cummings to resign, lack of EU trade talks and speculation about negative rates all weighed on sterling.

EUR

  • The euro was 0.57% higher against the greenback at 1.1066, its third straight session of gains. The single currency has gained 1.6% over the past three sessions. As risk sentiment improved, it helped push the euro higher and it is believe markets expect to see EURUSD volatility continue.

USD

  • The dollar fell to a two month low versus the euro yesterday as markets continued to react well to the possible 750 bln euro coronavirus recovery fund pushing risk appetite higher. Furthermore, another 2.1mln people filed for unemployment benefits in the week ending May 23 which didn’t help the greenback. The U.S. Dollar Currency Index, which measures the greenback’s strength against six other major currencies, was down 0.37% at 98.546, its weakest in nearly two months.

Other currency news

  • The Yen was higher against major currencies ahead of Trump’s press conference on China’s treatment of Hong Kong on Friday. AUD and NZD were also strongly supported nearing two month highs as business reopened there. 

Amir Mehrad
Market update by Amir Mehrad

14 years experience in deliverable foreign exchange, over 7 as CEO of Effective FX

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