Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Set for Weekly Win, but Experts Warn Dark Days Will Return

ForexAug 21, 2020 03:44PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The dollar rose on Friday, and remained set to end the week in the green following stronger-than-expected economic data, but some experts have warned the reprieve for the greenback will likely be short-lived.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.47% to 93.12.

The Commerce Department said existing home sales rose by a record 24.7% in July to a seasonally adjusted annual rate of 5.86 million units., topping forecasts for a 14.7% rise.

A survey of U.S. business activity also helped to ease fears about slack in the economic recovery.

IHS Markit data showed flash Composite Purchasing Managers' index of 54.7 for August, above forecasts of 51.3.

The greenback has come under pressure in recent months as the spread of coronavirus, which has since eased, spiked across the U.S.

But the damage the second wave of the virus has had on the economy will continue to weigh and force the Federal Reserve to continue with stimulus measures, threatening to send the dollar on a wild swing lower again.

"Although infections with the Covid-19-virus have now stabilized in the US, the relatively rapid outbreak of a second wave of the virus there has clearly tarnished the image of the dollar as a safe haven," Commerzbank (DE:CBKG) said.  

With the Federal Reserve in the midst of tweaking its forward guidance to link monetary policy to the achievement of concrete macroeconomic goals, investors continued to expect that the Fed would stick to its "expansionary monetary policy much longer than was the case after past crises," the bank added. "This in turn would require a reassessment of the market, especially of the dollar versus the euro. "

Dollar Set for Weekly Win, but Experts Warn Dark Days Will Return
 

Related Articles

Dollar Edges Lower Ahead of Fed Meeting; Yuan Weakens
Dollar Edges Lower Ahead of Fed Meeting; Yuan Weakens By Investing.com - Sep 21, 2021

By Peter Nurse Investing.com - The dollar edged lower in early European trade Tuesday, slipping from a month high, ahead of the start of this week’s crucial Federal Reserve...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Gabriele Boschetto
Gabriele Boschetto Aug 23, 2020 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm with Viktor here
Chris Black
ChrisBlackforex Aug 23, 2020 8:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No no! Viktor? I have the skill sir? just my daily Forex Reading. Since reading her column my longterm direction have be Excellent..You need Kathy Lien an you see your Profits in trade
Viktor Koldamov
Viktor Koldamov Aug 23, 2020 2:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
@ChrisBlackforex, if are depended on someone else to trade forex, you are doomed. Close your live account and learn the skills that are requiered.
Chris Black
ChrisBlackforex Aug 22, 2020 2:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Kathy Kathy where are you! Kathy Lien! i lost 128pip this week.. I Need you. Love You're WORK...
the one
the one Aug 22, 2020 1:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
kathy 🙄..
Wikibon Eric
Wikibon Eric Aug 21, 2020 8:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
get your quality to
Chris Black
ChrisBlackforex Aug 21, 2020 5:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What happen to KATHY LIEN?????
Ibrahim Sadau Suleiman
Ibrahim Sadau Suleiman Aug 21, 2020 5:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We are all waiting to hear from her.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email