File photo: The European Central Bank (ECB) presents a new 50 euro banknote at its bank headquarters in Frankfurt, Germany on July 5, 2016. REUTERS / Ralph Orlowski

July 22, 2021

Gertrude Chavez-by Dreyfuss

New York (Reuters) – The dollar broadly rose in volatile trading on Thursday and moved as risk sentiment rose and fell, but the euro fell as investors digested the European Central Bank’s statement and the president’s comments. did.

The US currency hit its highest level in more than three months on Wednesday.

The desire for risk was mixed, with US stocks rising slightly that day, but government bonds trading at high prices and yields falling.

Despite the dollar’s fall from its three-and-a-half-month peak, investors are still in demand, analysts said.

Simon Harvey, Senior Forex Market Analyst at Monex Europe in London, said:

“I don’t think this turmoil is going to go away in the short term, so I think the dollar will continue to soar over the next few months,” he added.

At the start of the session, the greenback slipped on higher-than-expected US jobless claims data, raising concerns about the world’s biggest economic recovery from a pandemic.

Meanwhile, the euro stayed strong early the next day, meeting expectations as the ECB pledged to keep interest rates at record highs for longer.

ECB Governor Christine Lagarde told a press briefing that nothing would change the cautious market outlook for the eurozone. She said a new wave of coronavirus pandemics could pose a risk to the region’s recovery, but it provided a more balanced economic outlook.

The accommodating spirit of the ECB, following a recently released strategic review, is expected to continue to pressure a single currency as many peers contemplate stimuli for the pandemic era.

By late afternoon, the euro fell 0.2% to $ 1.1767, not far from Wednesday’s three-and-a-half-month low of $ 1.1752.

Meanwhile, the dollar index rose 0.1% to 92.852, as the impact of US jobless claims data waned.

Data shows that the state’s first unemployment benefit bill for the week ending July 17 rose 51,000 to seasonally adjusted 419,000, the highest since mid-May. Economists polled by Reuters predicted 350,000 candidates last week.

Karl Chamotta, chief market strategist at Cambridge Global Payments in Toronto, said the data risked pushing back Fed tightening plans in the future, putting additional pressure on bond yields.

Growth-oriented currencies such as the Australian dollar gained from a global sell off of risks weakened further. Australia advanced 0.2% to US $ 0.7372.

The British pound rose 0.4% to $ 1.3767, recovering from the valley for five and a half months. Meanwhile, in cryptocurrencies, Bitcoin rose 0.4% to $ 32,287.

Bitcoin rose moderately after Business Insider announced that JPMorgan Chase and Company would allow all wealth management clients to access crypto funds.

The dollar fell 0.1% against the yen, another safe haven, to 110.17 yen.

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Bid price for the currency at 4:28 p.m. (2028 GMT)

Description RICLast US Close Pct Change YTD Pct High Bid Low Bid

Previous changes

session

Dollar Index 92.845092.8030 + 0.06% 3.183% + 92.9260 + 92.5040

Euro / Dollar $ 1.1769 $ 1.1789 -0.17% -3.67% + $ 1.1831 + $ 1.1758

Dollar / Yen 110.17001110.2800 -0.10% + 6.63% + 110.3550 + 110.0200

Euro / Yen 129.66130.09 -0.33% + 2.16% + 130.2900 + 129.4900

Dollar / Switzerland 0.91940.9177 + 0.19% + 3.92% + 0.9201 + 0.9156

Pound Sterling / Dollar $ 1.3764 $ 1.3713 + 0.38% + 0.75% + $ 1.3787 + $ 1.3691

Dollar / Canada 1.25671.2561 + 0.07% -1.29% + 1.2594 + 1.2530

Australia / Dollar $ 0.7381 $ 0.7360 + 0.30% -4.04% + $ 0.7397 + $ 0.7343

Euro / Switzerland 1.08191.0821 -0.02% + 0.11% + 1.0840 + 1.0814

Euro / Pound sterling 0.85490.8600 -0.59% -4.34% + 0.8609 + 0.8542

NZ $ 0.6973 $ 0.6972 + 0.02% -2.89% + $ 0.6985 + $ 0.6947

Dollar / Dollar

Dollar / Norway 8.85058.8785 -0.33% + 3.06% + 8.8915 + 8.7790

Euro / Norway 10.418310.4700 -0.49% -0.47% + 10.5235 + 10.3500

Dollar / Sweden 8.67778.6876 -0.24% + 5.87% + 8.7004 + 8.6452

Euro / Sweden 10.214410.2386 -0.24% + 1.37% + 10.2538 + 10.2080

(Report by Gertrude Chavez-Dreyfuss, supplementary report by Sujata Rao and Tommy Wilkes in London, edited by Bernadette Baum, Mark Heinrich, Dan Grebler)