Euro gains on broad dollar weakness, yuan jumps

21.08.2020 - Petr Mazaylo
Euro gains on broad dollar weakness, yuan jumps

The euro gained on Friday as the dollar was weighed down by doubts over U.S. economic recovery. This came after U.S. jobs data were reported to be weaker than expected, while the yuan rose to a seven-month peak as investors focused on China’s growth.

Euro investors are awaiting the euro zone’s purchasing managers index due later today, which will show how the region is faring with restriction measures eased.

A bigger-than-expected rise in weekly U.S. unemployment claims and the Fed’s warning about a recovery in hiring raised doubts about the country’s strength to economically recover from the pandemic.

The euro surged from below $1.12 in July to above $1.19 this week. It was up 0.1% at $1.1867 on Friday after hitting more than a two-year high of $1.1966 earlier this week. 

The dollar index slid to 92.663, on course for its ninth week of declines.

In the U.S. Congress, Democrats and Republicans are still debating on additional stimulus to boost the economy, while the euro zone launched several economic packages that were favored by investors.

Friday’s spotlight is on the offshore yuan, which hit 6.8935, its strongest since Jan. 21. The Chinese currency has recovered all of its losses since the coronavirus began to spread in the city of Wuhan. 

The pound benefited from the dollar’s broad weakness and was up towards $1.3250. It last stood at $1.3238 after climbing 0.2%. It briefly rose to 89.65 pence on the euro.

The dollar lost 0.2% to 105.59 on the Japanese yen. 

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?