US dollar headed for growth in uncertain market
US dollar stepped back from its highest position in three weeks. Nevertheless, the currency is still headed for gains, as traders are once again looking for safe haven.
The possibility of a rapid economic reopening now seems unlikely and the trade-dependent currencies suffered setbacks. The Australian dollar lost 1% - its first weekly reduction since last month. The kiwi went to US$0.5958 in Asian trading, yet it was pressed down by the discussions of negative interest rates that might be introduced in 2021.
The Antipodeans had a difficult time getting positive traction this month. Both traders and the governments are weighing the positive news about economic reopenings against the treat of the second virus wave.
JPY/USD remained stable at 107.18. The currency had a lackluster week, as the negative interest rates in the United States became less likely.
Global markets are also watching the latest development in US-China tensions. President Trump expressed his disappointment with China’s inadequate efforts of containing the virus. In his opinion, it undermines the whole trade deal. The President even considers cutting the diplomatic relations between the countries altogether. Danske Bank analyst already stated, that new tariffs are possible.