Dollar steadies as U.S. coronavirus cases surge ahead of holiday

03.07.2020 - Korneychuk Evgeniya
Dollar steadies as U.S. coronavirus cases surge ahead of holiday

The dollar traded in a narrow range on Friday, lifted by safe-haven bid as the surge of new cases in the United States quelled risk appetite.

The yuan steadied after China’s services sector rebounded and investors avoided bigger positions due to the diplomatic conflict between the U.S. and China over the Hong Kong security law.

The dollar traded at 107.57 on the yen and steadied at 0.9460 Swiss franc after three days of consecutive gains.

The euro stood at $1.1243 in Asian trade. The pound bought 1.2465 on the dollar and 90.20 pence per euro.

A resurgence of the coronavirus in several U.S. states halted plans for economic re-opening. Officials are also imposing measures to curb social activity on the upcoming July 4 holiday.

Gains in Asian currencies were capped ahead of the U.S. holiday. Analysts say that the market sentiment is favoring the dollar as investors turn cautious. 

The diplomatic friction between the U.S. and China is also closely watched. The U.S. Senate approved legislation to penalize banks doing business with Chinese officials who voted for the passage of the Hong Kong security law.

In onshore trade, the yuan stood at 7.0665. The Aussie steadied at $0.6921 and the kiwi traded at $0.6514.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?