Best forex robot FOREX-Dollar holds the upper hand as recovery doubts creep in - Reuters thumbnail

Best forex robot FOREX-Dollar holds the upper hand as recovery doubts creep in – Reuters

Business/Investing

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* Increasing COVID-19 cases fuel 2nd wave fears

* Grim IMF global development forecast fuels demand safety quotes

* Trade tensions weigh on danger sentiment

* Graphic: World FX rates in 2020 tmsnrt.rs/ 2RBWI5E(Includes brand-new quote, French and United States data, updates costs)

By Julien Ponthus

LONDON, June 25 (Reuters) – The U.S. dollar edged greater on Thursday as elements ranging from increasing trade tensions to fears of a 2nd wave of the coronavirus sustained need for safe-haven currencies.

The dollar index advanced 0.1%to 97.35 however remained below a 2020 high of near 103 in late March.

” As U.S. infections increase again, markets are re-assessing the possibilities of a fast return to ‘normal’ economic activity. If we have to learn to deal with and control a virus for a long time, quick healings in PMIs and labour markets will stall at a lower level of activity,” said Set Juckes, macro strategist at Societe Generale, describing Purchasing Managers’ Index studies.

” That is holding us back from calling a considerable turnaround in the dollar’s fortunes this year,” Juckes stated.

The euro pulled back 0.3%to $1.1222, ignoring a fall in France’s jobless overall in Might after it reached record levels the previous month.

The Japanese yen fell 0.2%to 107.21

A resurgence of COVID-19 cases from the United States to Kyrgyzstan fuelled fresh fears that the V-shaped financial recovery anticipated by the market remained in jeopardy.

The International Monetary Fund slashed its 2020 international output forecasts even more, forecasting more damage from the pandemic than it had previously expected.

Likewise souring the mood was news that Washington is considering changing tariff rates for different European products as part of the trading partners’ aircraft conflict.

Canada’s dollar weakened to a 10- day low of $1.3666 after it became the first nation to lose its AAA ranking as an outcome of coronavirus-fuelled government costs, prior to recuperating to trade 0.1%up on the day.

” The significant monetary support the Canadian federal government has supplied to cushion the results of the corona restrictions have actually come at a price”, Commerzbank experts commented.

Elsewhere, Scandinavian currencies rose against both the U.S. dollar and the euro, with the Swedish crown up 0.5%versus the euro.

Traders will be enjoying U.S. durable products and initial jobless claims information at 1230 GMT. Both are predicted to come in weaker than the previous readings, according to economists surveyed by Reuters. (Reporting Julien Ponthus in London and Hideyuki Sano in Tokyp; modifying by Saikat Chatterjee, Larry King, Kirsten Donovan)