The euro briefly hit its strongest since mid-March on Monday and riskier currencies like the Australian dollar rallied as investors looked to positive signs from China’s post-coronavirus economic recovery and hopes for an easing in Sino-U.S. tensions. Investors were relieved that U.S. President Donald Trump made no move to impose new tariffs on China during a news conference on Friday where he outlined his response to Beijing’s tightening grip over Hong Kong. They were also encouraged by the Caixin/Markit Purchasing Managers Index showing a marginal but unexpected improvement in Chinese ...

The European Union’s recovery fund proposal has been dubbed the “Make Europe Great Again” fiscal spending package by analysts at BofA, who said that it was the best shot at ending the region’s equity bear market and reversing the U.S. dollar’s rally. BofA said the “Make America Great Again” policy pushed by U.S. President Donald Trump to boost the American economy had supported the dollar until now, and “Make Europe Great Again”, or “MEGA”, is now likely to help the euro. The European Commmission on Wednesday proposed to offer 500 ...

The euro extended its gains on Friday to a two-month high as traders waited for U.S. President Donald Trump’s response to China’s tightening control over Hong Kong, which could further worsen tensions between the two over the financial hub. The yen rose against major currencies as investors looked for safe havens before Trump’s response to China’s passing of a national security law for Hong Kong. “I think the market is still fearful that it might escalate into something more serious. If he was serious with trade tariffs, that would have ...

The euro continued to rise on Thursday, boosted by a 750 billion euro ($826.35 billion) EU plan to prop up the bloc’s coronavirus-hit economies, though gains were limited as doubts about delivering the scheme crept in. The EU executive unveiled a plan on Wednesday to support economies hammered by the pandemic, hoping to end months of squabbling over how to fund a recovery that exposed faultlines across the 27-nation bloc. Under the proposal, the EU Commission will disburse two-thirds of the funds in grants and the rest in loans to ...

The U.S. dollar edged higher on Wednesday and China’s yuan hit a near nine-month low as worries about the U.S. response to China’s proposed security law for Hong Kong injected a more cautious tone into foreign exchange markets. The U.S. currency had fallen sharply on Tuesday as strong risk appetite encouraged investors into riskier currencies, but that sentiment was much less buoyant in early trading on Tuesday. Some investors are betting on a rapid resumption of economic activity following the crippling coronavirus outbreak, but others worry the threat of U.S. ...

The euro got a boost on Tuesday from a weaker dollar as growing optimism about a global economic recovery from the COVID-19 pandemic supported riskier currencies, though Sino-U.S. tensions kept the mood in check. The trade-sensitive Australian and New Zealand dollars and Norwegian crown each rose more than 1% versus the U.S. dollar. The Chinese yuan, a barometer of U.S.-China relations, was mostly left behind by a rally in other Asian currencies. “At the moment the euro is torn between political risks on the one hand and positive sentiment on ...

The euro got a boost on Tuesday from a weaker dollar as growing optimism about a global recovery from the COVID-19 pandemic supported riskier currencies. The moves, however, lacked the exuberance of the equities market as Sino-U.S. tensions kept the mood in check. The trade-sensitive Australian and New Zealand dollars each rose about 0.7%, but remain below last week’s highs. The Norwegian crown also rose nearly 1% versus the U.S. dollar. The Chinese yuan, a barometer of U.S.-China relations, was mostly left behind by a rally in other Asian currencies. ...

The U.S. dollar climbed on Monday after posting a rare weekly loss as investors flocked to the shelter of perceived safe-haven currencies on concerns about a growing standoff between the United States and China over civil liberties in Hong Kong. The greenback, which tends to behave like a safe-haven asset at times of market turmoil and political uncertainty, rose a fifth of a percent to 99.98 against its rivals, a one-week high. The Australian dollar, by dint of its strong trade connections with China and the offshore yuan, led losers ...

The dollar rose on Friday in overnight trading and extended its gains in early London trading, after U.S.-China tensions boosted demand for safe-haven currencies. U.S. President Donald Trump said that Washington would react “very strongly” to new Chinese legislation on Hong Kong, which could lead to new pro-democracy protests. Sino-American relations have worsened during the coronavirus pandemic. The U.S. has ramped up its criticism of China, blaming it for the spread of the virus, which originated in Wuhan. Last week, the U.S. government moved to block global chip supplies to ...

The dollar edged higher on Thursday as Sino-U.S. tensions and weak economic indicators in Europe dented sentiment after hopes of a quick economic recovery and further stimulus fuelled an overnight rally on Wall Street. Against a basket of currencies the greenback rose 0.2% to 99.40 while U.S. stock futures were trading in the red. The euro eased down 0.1% to $1.0972, giving up some gains secured after a Franco-German proposal for a pan-European Union fund propped up hopes the bloc could move closer to a fiscal union. Stock markets across ...

The euro edged higher on Wednesday as a Franco-German proposal for a common fund that could move Europe closer to a fiscal union underpinned demand for the common currency, while some risk aversion in currency markets also boosted the Swiss franc. The euro inched up 0.18% to $1.0945 , near a two-week peak of $1.09755 reached on Tuesday. Breaking that could open the way for a test of its May 1 high of $1.1019. But the moves were tiny and well within recent ranges due to the presence of large ...

The euro rallied on Tuesday, propelled by a Franco-German proposal on Monday for a fund that would offer grants to European Union regions and sectors hit hardest by the coronaries pandemic. The common currency was also buoyed by a weaker dollar, which lost its safe-haven appeal after encouraging results from the trial of a vaccine for COVID-19, boosting riskier assets. Germany and France, whose agreements usually pave the way for broader EU deals, proposed that the European Commission borrow the 500 billion euros ($546.90 billion) on behalf of the whole ...

Investors are gradually returning to the currency markets following a rout in March when the spread of the new coronavirus sent most units tumbling against the dollar, a group of market data providers found. Liquidity in the foreign exchange markets is coming back towards pre-COVID-19 levels for some of the major currencies, with most recording on average about 70% to 80% of their previous daily volumes, Mosaic Smart Data, CLS and MUFG found in a collaborative project. Trading volumes in emerging market currencies “are not faring as well”, however, and ...

The dollar edged down on Monday as optimism about the re-opening of economies hit by the coronavirus pandemic boosted risk appetite, lifting commodity currencies such as the Norwegian krone. The gradual easing of lockdowns has fuelled optimism across global markets despite fresh trade tensions between the United States and China. “Markets are quietly risk-on overnight”, said Adam Cole, chief currency strategist at RBC Capital Markets. The dollar index drifted 0.05% lower at 100.28. The Norwegian krone was lifted by rising oil prices, supported by output cuts and signs of a ...

The U.S. dollar was set for a small weekly gain on Friday and the Australian dollar for a 1% drop this week as the threat of a second wave of coronavirus infections rattled investors. Total cases in Germany increased by 913 to 173,152 on Thursday and the death toll rose by 101 to 7,824 after the country eased the nationwide lockdown imposed to safeguard the economy and protect lives. New infections were recorded as well in other countries which have eased restrictions on public life, denting earlier investor optimism that ...