On Monday, the euro
rose to a three-month high against the dollar, as bearish sentiment against the US currency remained stable after the US Federal Reserve last week gave a signal that it could soon cut interest rates.
The euro strengthened its rally last week, when it added 1.4%, and grew by 0.15% to $ 1.1386 at the start of Asian trading session today, reaching a maximum since March 22. At the moment, the EURUSD pair is trading higher at 1, 1382.
The dollar index
versus a basket of six major competitor currencies fell slightly to 96.107, reaching 96.093 on Friday, its lowest level since March 21, after the Fed last week opened the door to a potential rate cut next month.
This put pressure on the dollar and, in turn, gave new impetus to its competitors, such as the euro, which had enough of its problems, including the problem of Italy’s debt and the possibility that the European Central Bank would have to continue its easing policy.
In relation to the Japanese yen
, the dollar rose by 0.1% to 107.395 after retreating to a nearly six-month low of 107.045 last Friday.
However, the US currency is under additional pressure from the yen, which often serves as a safe haven during periods of political instability, since tensions have increased again between Iran and the United States.
But, despite the new factor of political influence, it is difficult to believe that the dollar will fall above 105 yen since a steady outflow of dollar assets is unlikely. The S&P 500
index reached a record high thanks to a possible reduction in rates thus strengthening investor risk appetite that slows down any transition to the Japanese currency.
Investors focus this week will be on question whether Washington and Beijing will be able to resolve their trade dispute at the G-20 leading global economic summit in Japan this week.
The Australian dollar
rose to a 12-day high of $ 0.6961 after the Governor of the Reserve Bank of Australia (RBA), Philip Low, said it would be legitimate to question the effectiveness of easing global monetary policy to stimulate economic growth.
The comments were perceived as somewhat less dovish because only last week Low said that the recent decline in interest rates in Australia to a record low of 1.25% would not be enough to revive economic growth.
The Aussie was already in a steady position after recovering from a five-month low of $ 0.6832 last week, when the Fed’s leaning toward easing monetary policy helped offset bearish behavior with a likelihood of easing in countries like Australia and New Zealand.Earn on Forex >Forex trading recommendations:EURUSD: Sell. Entry point – 1, 1383. Take Profit – 1, 1365. Stop Loss – 1, 1413.USDCHF: Sell. Entry point – 0, 9768. Take Profit – 0, 9749. Stop Loss – 0, 9801.USDCAD: Buy. Entry point– 1, 3189. Take Profit – 1, 3204. Stop Loss – 1, 3163.