U.S Dollar Maintains Stand, As Foreign Exchange Traders Stay Put

The U.S dollar Index maintained a stronger ground against other major countries currencies as it soared higher in the forex market as it trades at 97.744.

The U.S dollar index has marginally be strengthened against other major currencies such as the Swedish Krona, Euro, Swiss Franc, and British pound.

Brandnewsday reports that the American dollar index revealed that it has garnered more grounds as it moved higher to trade at 97.744 before it maintained a flat above strong support levels of 97.25.

Meanwhile, the U.S dollar index price swing remained modest against other major currencies, as currency traders fear the reemergence of COVID-19.

The U.S Dollar

Imperatively, it is noteworthy tracking the U.S dollar Index; Individuals, businesses hoping to meet a foreign exchange payment obligation, transactions via the dollar to countries like Europe, Japan, would have the need to pay less U.S dollars to fulfil such payments.

“We expect the FX markets to remain caught between recovering economic indicators and concerns about a second-wave of COVID-19 infections in the week ahead,” analysts at Barclays said in a note to Reuters.

Some currency traders expect sentiments to be risk-averse in this coming week.

Head of Research at Pepperstone, Chris Weston told CNBC that “It won’t take much for the market to see this as a liquidity headwind…and when we mix in rising concerns around a renewed COVID-19 crisis then it may keep risk on the back foot this week”.

However, the World Health Organization (WHO) disclosed that a record increase in the global cases of COVID-19 on Sunday, especially in the western countries and most some Africa countries, thus currency traders’ optimism remains cold.